Deferred annuities provide a larger income tax deduction in the year they are funded and larger guaranteed payouts at the time payments begin. As an alternative to an outright bequest, you may wish to consider establishing a charitable remainder trust. These trusts are popular because they are flexible and can be tailored to fit your specific financial and philanthropic goals. A trust created during your life produces income, capital gain, and estate tax savings. A trust effective at the end of your life is wonderful for retirement assets.
Annual payments vary with the market and performance of the trust's investments.
You can make additions to a unitrust, including additions by bequest. If you use appreciated property you can increase the tax benefits. A unitrust is the option to explore for converting marketable real estate and unmarketable securities to income production. Charitable Annuity Trusts Similar to a unitrust, but different in how the payments to the beneficiaries are calculated. The fixed payout adds stability, especially for a beneficiary who needs the security of a specified income, as the amount of payment is calculated at the time of the gift.