If you are frustrated by the extremely low interest rates offered on bank accounts and CDs, perhaps it is time to consider funding a Charitable Gift Annuity with Hamilton. For someone age 72, such a gift would provide an annual payment (for life) of 6% and a tax deduction amounting to about 1/3 of the principal. If funded with cash, most of the annual income will be tax-free.
— A member of the Class of 1961
Hopefully, most of us in our "Senior Years" have some sort of estate planning program to provide for our family and other beneficiaries. I have made such provisions and would like to share the following information. First, find a good estate planner and consider a Charitable Remainder Trust (CRT). Our planner set up a CRT for us several years ago before we sold the majority of our rather extensive coin collection. Our goal was to channel the bulk of the proceeds to our children.
To illustrate, my wife and I established a CRT, contributed the coin collection to the trust and named ourselves as trustees so we could control the sale of our collection. Since the CRT is a tax-exempt entity, no capital gains tax was due on the sale of the coins. Further we made an illiquid, non-income producing asset productive.
We then named several not-for-profit organizations - including Hamilton, churches and other schools - as remainder beneficiaries of the CRT.
In order for our heirs to receive money as well, we purchased a sizeable life insurance policy on both my wife and me with a portion of the income from the CRT. The death benefit will be payable to our children tax free. My wife and I also receive a nice quarterly check from the CRT. It is truly a win-win-win situation for our children, the charities, and my wife and me.
— A member of the Class of 1956
Carrie and I felt it was important to recognize the significance of the College in our lives and the lasting friendships we established, so as my milestone 50th reunion started to lurk in our thoughts, along with mandatory IRA withdrawals, we decided to set the stage for our class reunion gift and hopefully for other classes to follow.
After talking to Ben Madonia, director of planned giving, about gift alternatives we decided to pledge five $25,000 charitable gift annuities. We were comfortable with the amount using my Required Minimum Distributions beginning at age 70 ½, and completing these gifts over five years provided us with dollar cost averaging protection based on interest rates along with the increased payouts each year based on our ages. Each charitable gift annuity gives us an immediate tax deduction of approximately 35% and fixed quarterly payments for life. More than 70% of each payment is non-taxable. Our first contribution covered both of our lives, while subsequent contributions have been one-life gifts alternating between Carrie and me.
— Milt Walters ‘64
Hamilton makes a number of resources available to you, including the following: