Based on rates prepared by a qualified actuary. Rates are higher for older people. Annually or more frequently. One or two people may be named in the agreement. A portion is reportable as ordinary income or capital gains by beneficiary.
Balance is tax-free for the life expectancy of the annuitant.
The difference between the fair market value of the initial gift amount and the actuarial value of the annuity. Funds are invested to yield returns deemed necessary to fulfill the terms of gift annuity agreement. Annuity payments only. Securities-Average of high and low of market value on date of transfer. Initial income tax deduction.