Life income gift
Without the support of our generous circle of givers, PacRep could not withstand the "whips and scorns of time."
With a life income agreement, you make an irrevocable gift in exchange for income for the rest of your life, or the lives of you and your spouse. Sometimes it can also provide income during your children's lives. When the last beneficiary passes, the remainder goes to PacRep.
When to consider one
A life income agreement is attractive if you own an asset that has grown greatly in value but produces little income, and you are reluctant to sell it and pay a large capital gains tax. It can also provide monthly, quarterly or annual income for children who are not able to manage an inheritance.
The advantages
- Income for life (or the life of your designated beneficiary)
- Possibly increased income if you give low-yielding or unproductive assets
- Possible avoidance of capital gains tax on appreciated assets
- An immediate income tax deduction
- Possibly reduced estate taxes
- Substantial future support for a cause that is important to you
- Membership in the Encore Circle, the community of PacRep supporters who have made similar provisions in their estates.
Examples of life income plans
- Charitable gift annuity
- Joint and survivor annuities
- Charitable remainder trust
(unitrust or annuity trust) - Pooled income fund
How do I make one?
A life income agreement requires an attorney who is knowledgeable in estate planning. We can help you find qualified attorneys if you are not already working with one.
We make no claims regarding the accuracy of this information or the tax consequences of your use of it. Please consult your own tax, legal or financial planning advisor.