February 2016 | Sharpe Group
Sharpe Blog

Archive for February, 2016

Some Gift Annuity Questions – Part 3

Here we look at some gift annuity situations that went awry. Beginning with an important case that involved a flawed gift receipt. Case # 1: Donor transfers $25,000 to Charity to establish a gift annuity. Charity prepares a gift annuity agreement, which Donor signs, and subsequently begins making annuity payments to Donor. In due course, …Read More

Some Gift Annuity Questions — Part 2

Gift annuities are simple except when they’re not. Some more questions: Can a commercial annuity be swapped tax-free for a charitable gift annuity? Some donors and advisers think so, but the answer is no. The question arises because there’s a tax-free “1035 exchange,” which allows one commercial annuity to be swapped tax-free for another commercial …Read More

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