Comparison of Life Income Plans by vyd52713

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									                        Comparison of Life Income Plans
                            Charitable Gift             Charitable Remainder Charitable Remainder
      Feature
                            Annuity (CGA)               Annuity Trust (CRAT)   UniTrust (CRUT)

                         Donor receives an income
    Income Tax             tax deduction for the
                            present value of the               Same as CGA                     Same as CGA
     Deduction               anticipated future
                               charitable gift



                        Once the CGA is established,
 Ability to Change      the donor cannot change the
                                                         The donor can change the        The donor can change the
                                                        charitable beneficiary if the   charitable beneficiary if the
    Charitable           ultimate beneficiary of the
                                                              trust permits it                trust permits it
                               charitable gift
   Beneficiary

 Determination of                                                                        Stated percentage in trust
                        Fixed amount based on age
   Annuitant or            of person(s) receiving
                                                        Fixed amount stated in trust    document multiplied by the
                                                           document annuitant(s)          value of the assets in the
Beneficiary’s Income             payments
                                                                                                    trust
      Amount

                          A deferred GGA can be          A deferred CRAT can be          A deferred CRUT can be
  Availability of          created, allowing the           created, allowing the           created, allowing the
                         payment start date to be        payment start date to be        payment start date to be
Deferral on Income      delayed to a specific date in   delayed to a specific date in   delayed to a specific date in
     Payment                     the future                      the future                      the future



                           A portion of income is         Income payments are             Income payments are
Taxability of Annuity     deemed to be a return of       subject to tax depending        subject to tax depending
                          capital, making it free of     upon the type of income         upon the type of income
 (Income) Payments               income tax                earned by the trust             earned by the trust




                        Please turn this page over for additional information.
                            Charitable Gift             Charitable Remainder Charitable Remainder
      Feature
                            Annuity (CGA)               Annuity Trust (CRAT)   UniTrust (CRUT)

                         Can be a fixed term or for      Can be a fixed term or for     Can be a fixed term or for
Term and Number of      life. Can be created on one      life and can be created for    life and can be created for
    Annuitants                or two annuitants              multiple annuitants            multiple annuitants




                        No separate entity is created    A separate entity must be      A separate entity must be
Creation of Separate     - JCF issues an annuity        created and is governed by a   created and is governed by a
       Entity              contract to the donor              trust document                 trust document




                         JCF charges its standard        JCF charges its standard       JCF charges its standard
Administrative Fees        administrative fee              administrative fee             administrative fee




                          Most frequently, cash or                                      Virtually any asset can be
                          securities - appreciated       Most frequently, cash or        accepted, including real
  Assets Accepted           assets offer the best               securities              estate, partnerships and
                          advantages to the donor                                      tangible personal property




                            For more information, please contact:

                                      Joshua W. Rednik, CFP®
                                          Executive Director
                        Jewish Community Foundation of MetroWest N.J., Inc.
                                    901 Route 10 ▪ P.O. Box 929
                                     Whippany, NJ 07981-0929
            Phone: 973.929.3060 ▪ E-mail: jrednik@ujcnj.org ▪ Web: www.jcfmetrowest.org

								
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