Creating income for your loved ones
A gift annuity is an arrangement that enables a donor to make a contribution to the University in exchange for fixed payments during one’s lifetime, with any remaining value passing to the University. Donors typically establish a gift annuity that makes payments to the donor and the donor’s spouse—a wonderful way to provide financial security for a surviving spouse.
Gift annuities can also provide income and financial security to other individuals who are important to you, such as children, nieces and nephews, friends, or caregivers. (A gift annuity is not well suited to provide for minor grandchildren.) Unlike an outright bequest, which a recipient could spend all at once and which could be subject to creditors, a gift annuity guarantees a steady source of income for the rest of the recipient’s life in a manner that minimizes financial abuse or risk.
If you want to leave a legacy to the University and ensure that someone you care about is supported financially after you are gone, a gift annuity could be the answer. You can establish a gift annuity to benefit people such as
- a trusted caregiver or friend whom you support financially now,
- a relative who could benefit from a fixed source of income, or
- a longtime employee whom you wish to recognize for many years of loyal service.
A final point: Unless you make valid written arrangements for these special individuals, your desire to help them, even if you’ve spoken about it to them or others, will not be realized. As a nonprofit organization subject to state and federal laws, the University cannot create a gift annuity for another individual from a charitable bequest unless it is legally authorized to do so in your estate plan documents.