Flexible Start DatesFlexible Start Dates
With a traditional deferred gift annuity, guaranteed annuity payments are made to a donor and/or another individual for life, starting at a specified date more than one year from the donor's transfer to the charity. Typically, a donor who has sufficient current income from employment or other sources but is concerned about retirement transfers assets to a charity and signs an agreement that sets the
Conrad Teitell, principal, Cummings & Lockwood LLC, Stamford, Conn.
With a traditional deferred gift annuity, guaranteed annuity payments are made to a donor and/or another individual for life, starting at a specified date more than one year from the donor's transfer to the charity. Typically, a donor who has sufficient current income from employment or other sources — but is concerned about retirement — transfers assets to a charity and signs an agreement that sets the rate to be paid and the starting date. When the ink is dry on the agreement, so are its terms.
But PLR 200449033 issued at the end of 2004 allows a new flexibility for start dates and therefore rates. A donor (and his beneficiary) can delay — or speed up — the day that thei...
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