Why am I so enthusiastic about life income gifts to Middlesex? There are a number of reasons, but perhaps the most important is to be able to do something now that will benefit the School in the future. Moreover, by retaining a life interest in the income for myself and my wife, it is possible to make a larger gift than we could afford if it were an outright gift. It is also a source of considerable satisfaction to be able to add to our Charitable Remainder Trust each year and to see it grow. No one can foresee the future and it is entirely possible that Middlesex's needs, some decades from now may be even greater than they are today.
It is also true that our tax laws encourage this kind of philanthropy. If one holds highly appreciated but low yielding stocks, it is possible to transfer them to a Charitable Remainder Trust or Pooled Income Fund and thereby: (1) increase ones income for life, (2) avoid tax on the capital appreciation, and (3) receive a tax deduction on the present value of the remainder interest. These advantages are particularly helpful if one's assets are concentrated in a single holding and there is an urgency to diversify.
While everyone's situation is unique, I hope these ideas may be helpful to others."
— Thomas Synnott '54
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.