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
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