Income is a fixed rate of return and remains constant for life.
A deferred Gift Annuity allows the donor to get a charitable deduction in the year of the transfer of the assets to the Red Cross, but delay the annuity payments as well as the estate tax and capital gain benefits are the same as those for a current gift annuity. The payout rate for a Deferred Gift Annuity depends on the donor's age at the time of the transfer and the age at which the annuity payments begin. The income beneficiary must be at least age 55 when payments begin. When the lifetime beneficiaries dies or the time period expires, the trust principal belongs to the Red Cross. However, the larger the payout rate, the smaller the charitable income tax deduction will be.