annuity agreement

Document Sample
annuity agreement Powered By Docstoc
					SAMPLE Charitable Gift Annuity Deed of Agreement
This deed of agreement is effective this _______ day of ____________________, 200___, Between: (hereinafter called the “Donor”) Having a Social Insurance Number of: Of the first part And THE UNIVERSITY OF MANITOBA (hereinafter called the “University”)

Having a Charitable Registration Number of: Of the second part

WHEREAS the Donor wishes to transfer certain of [his/her] assets from the ownership of the Donor to the University; AND WHEREAS the Donor understands and agrees that the University will purchase a life annuity for the benefit of the Donor; AND WHEREAS the University undertakes to seek to obtain a quality commercial annuity for the Donor; AND WHEREAS it is the Donor’s intention that if any amount should remain following the purchase of the said annuity, it shall be retained by the University to be used by the University for the purposes described in Article 5 of this Agreement; NOW THEREFORE in consideration of the mutual covenants and agreements set forth below, the Donor and the University agree as follows: 1. Payment to the University Subject to the terms and conditions of this Agreement, the Donor hereby pays and transfers to the University the amount of $___________to be used by the University for the purposes set forth below. 2. Authorization of the University to Purchase an Annuity The Donor hereby authorizes the University to purchase, from a licensed life insurance company in good standing, on the terms set forth in Article 3(a), an annuity for the life of the Donor. If the University cannot obtain an annuity that allows the University to fulfill the terms of this Agreement within ten (10) calendar days subsequent to the passing of time defined in Article 4(a) then this Agreement is null and void and no further rights, obligations or responsibilities shall flow therefrom and any payment made under Article 1 shall be returned to the Donor. 3. a) Terms of Annuity The University agrees to select an annuity from a life insurance company based on the following requirements of the Donor: (i) The annuity will pay an annual/semi-annual/quarterly/monthly amount of $_______________ to the Donor. (ii) Payment under the annuity will commence not later than the ____day of_________, 200____ and shall be made [monthly, quarterly, semi-annually, annually].


(iii) The annuity so acquired will be guaranteed by the insurance company for a period of _______ years (the “Guarantee Period”) and the beneficiary of the guaranteed payments in the event of the death of the Donor during the Guarantee Period shall be the University. (iv) Subsequent to purchasing an annuity on the life of the Donor, the University shall issue to the Donor a charitable tax receipt in the amount of $__________. b) The University shall complete an annuity application and apply for an annuity through an authorized agent of a life insurance company and communicate to the agent accurately all information required for the procurement of a suitable annuity. 4. a) Termination Prior to Purchase of Annuity The Donor shall have ten (10) calendar days from the effective date of this Agreement written above to terminate this Agreement provided that the Donor shall be required to deliver written notice of termination to the University which must be received by the University within such ten (10) calendar day period. The University agrees that upon receipt of a notice of termination from the Donor that complies with this Agreement, it shall refund to the Donor the entire amount transferred to the University under Article 1.

b) If the University does not receive a notice from the Donor in accordance with clause (a), the transfer to the University shall be deemed to be irrevocable. 5. Payment for the University’s Purposes Any amounts not used by the University for the purchase of the annuity shall be deemed to be a gift by the Donor to the University and may be used by the University for any purposes that the University chooses for the fulfillment of its objectives or the Donor can request that such amounts be used for ________________ _____________________________________________________ in the fulfillment of the University’s objectives. 6. No Warranty The Donor agrees that the University is not liable for and makes no warranties or guarantees to the Donor regarding any tax savings or other benefits which may or may not result from the Donor’s purchase of the annuity. 7. Independent Legal Advice THE UNIVERSITY HAS ADVISED THE DONOR TO SEEK INDEPENDENT PROFESSIONAL LEGAL AND FINANCIAL ADVICE WITH RESPECT TO ALL OF THE TERMS OF THIS AGREEMENT AND THE PURCHASE OF THE ANNUITY. THE DONOR AGREES THAT THE RELATIONSHIP BETWEEN THE DONOR AND THE UNIVERSITY IS NOT A FIDUCIARY RELATIONSHIP. 8. a) Privacy Consent The Donor acknowledges that in signing this Agreement the Donor gives permission to the University, to obtain and keep on its file personal information that the Donor has provided. The Donor acknowledges that this personal information, not published, may include but is not limited to: i) ii) iii) iv) Any income tax information; Account statements from an insurance company; Personal information required to apply for an annuity with an insurance company; and Copies of identification including photo identification and banking information;

b) The Donor understands that the University may use and disclose the Personal Information to: i) ii) iii) c) Communicate with the Donor in a timely and efficient manner; Assess the Donor’s application for an annuity; Act as required or authorized by law.

The University undertakes that it will not: i) Sell the Personal Information to anyone; and/or


ii) Except for the corporation from which the University purchases the annuity, share the Personal Information with organizations that would use it to contact the Donor about their own products or services without the Donor’s express permission. 9. a) General Provisions Notice. Any notice required or permitted to be given under this Agreement shall be in writing and may be delivered personally or mailed by prepaid registered mail addressed to the University as follows: The University of Manitoba Room 202 Administration Building Winnipeg, MB R3T 2N2 Attention: Vice-President (Administration) with a copy to: The University of Manitoba Office of Planned Giving, Department of Development 179 Continuing Education Complex Winnipeg, MB R3T 2N2 and addressed to the Donor as follows:

Any notice sent by prepaid registered mail shall be deemed to be duly given and received on the fourth business day following the date of mailing, except that no Saturday, Sunday or holiday shall be considered a business day. In the event of disruption of mail service, notice shall be served personally. b) Entire Agreement. This Agreement constitutes the entire agreement between the Donor and the University and supersedes all prior agreements, understandings and discussions, whether oral or written, regarding the subject matter hereof. No representations, inducements, promises or agreements not embodied in this Agreement shall be of any force or effect with reference to this Agreement or otherwise. c) Severability. If any provision of this Agreement is found to be wholly or partially invalid, this Agreement will be interpreted as if the invalid provision had not been part hereof so that such invalidity will not affect the validity of the remainder of the Agreement.

d) Governing Law. This Agreement shall be governed by the laws of the Province of Manitoba and the laws of Canada applicable thereto. IN WITNESS WHEREOF the parties have duly executed this Agreement as of the date first above written.


_______________________________________ Signature of Donor



Per: ____________________________________ Name and Title

H:\Legal\Private Funding\Charitable Gift Annuity Deed of Agmt - precedent v3clean.doc


Description: Agreement