Charitable Gift Annuity
Donation of amount "A," made by donor X to a charity. The charity agrees to pay donor X an amount ("B") for the rest of donor X's life. Since the donation is used to fund an annuity, only a percentage of the donation can be taken as a tax-deductible gift in the year of the donation. The percentage taken is based on the Internal Revenue Service tables at the donor's age at the time of the donation. This gift is irrevocable. Since the donor is dependent on the charity to make the income payments, the donor should ascertain the financial ability of the charity to make those income payments. Thus, such an annuity permits the donor to transfer appreciated property to a charitable organization in exchange for the organization's promise to pay a continuous stream of income.
Popular Insurance Terms
Person other than the annuitant as designated by the policyholder on whose life expectancy the annuity payment is also based. ...
Combination of contributions of many investors whose money is used to buy stocks, bonds, commodities, options, and/or money market funds, or precious metals such as gold, or foreign ...
Coverage for fire and explosion, against fire and any damage caused by explosion whether or not fire ensues, and whether or not an explosion occurs on- or off-board; sinking from floating ...
Former method of funding a pension plan. When employees retire, the employer sets aside a lump sum that will pay them lifetime monthly benefits. When determining the amount, these factors ...
Coverage for damage or destruction to an insured bridge. Insures on an all risks basis subject to exclusions of war, wear and tear, inherent defect, and nuclear damages. Coverage is ...
Requirement that an individual must withdraw a minimum sum annually from retirement savings that have accumulated on a tax-deferred basis. This withdrawal must begin by April 1 of the year ...
Legislation that changed the tax treatment concerning child-care expenses so that an employee who has incurred child-care expenses greater than $4800 and who is participating in a ...
Liability Insurance is a type of coverage present in Home Insurance as well as other fields of insurance. In Real Estate, Liability Insurance refers to coverage protecting the insured from ...
Latin phrase meaning "overpowering force"; an unavoidable accident or calamity; an accident for which no one is responsible; an act of god. ...
Have a question or comment?
We're here to help.