Charitable Gift Annuity
Example #3
Georgia Smith is a retired teacher, who is 71 years old. Her husband, Bob, passed away two years ago. She is preparing to move into a retirement community. She would like to use her home to set up a Gift Annuity. She is in the 25% tax bracket.

Bob and Georgia paid $75,000 for their home. She just had it appraised at $250,000.

In the case of appreciated property such as Georgia's home, Radio Kansas will normally give a receipt for 20% of the appraised value to the donor, and then create the Gift Annuity for the remaining 80%. This allows for some flexibility between the appraised value and the actual price when Radio Kansas sells the property. It also helps pay for the cost of the sale.

Mrs. Smith will receive an immediate tax deduction for the $30,000 donation value of the direct portion of the gift, which could mean a tax savings of $12,500, within IRS allowances for the year. They will also bypass capital gains on $15,000 of the direct portion of the gift, with a possible savings of $2,200. Radio Kansas will then execute a $200,000 Gift Annuity. With the ages and life expectancies of both in mind, the standard rate determined by the American Council on Gift Annuities would give them a 6.6% return each year for as long as one of them lives.

She will be able to partially bypass an additional $140,000 in capital gains resulting in a possible savings of $8,739. She will also receive a current tax deduction of $83,225 which may save her $20,806. These amounts are in addition to the savings from the $50,000 direct gift above.

She will receive an annual payment of $13,200 for the rest of her life. Of that payment, $2,371 will be tax free for the first 15 years.

On average, Mrs. Smith would be expected to receive a total of $215,160, for an effective payout of 8.2%, while Radio Kansas is expected to retain the full value of the initial gift of $250,000.

Radio Kansas will be glad to prepare a more detailed custom
estimate of a Gift Annuity for you. All information submitted
will be treated as confidential.

Request custom estimate

  All of these figures are estimates, offered here strictly as an example. Radio Kansas cannot offer tax or legal advice. Please consult a tax advisor for final figures in your specific situation.  

For more information, contact Sharon Webb at 1-800-723-4657

Join now
Leadership Circle
Major Gifts

Stocks and Bonds
Great tax savings and significant support
for Radio Kansas.
Meet the Hamiltons

Listen On-Line
| Be a Member | Programs | Underwriting
Signal Coverage | Employment | Contact Us | Home

815 N. Walnut, Suite 300, Hutchinson KS 67501 - (620) 662-6646

A service of Hutchinson Community College
Copyright 2001-2013, Radio Kansas, All rights reserved