Miami Children’s Hospital Foundation (MCHF) offers a variety of life-income gifts which gives back to you as well as helping Miami Children’s Hospital (MCH). There are several options when establishing a life-income gift. Which are described in more detail below.
How it works:
You irrevocably contribute cash, appreciated securities or other property to MCHF, which it then sells and reinvests the property to pay an annual income to you and/or a beneficiary for life or a term of years. After the death of the last beneficiary or the end of the term, your gift is transferred to MCHF. The proceeds of your gift are used for the purposes you designate at the time of your contribution.
Benefits Include:
Annual income for you and a beneficiary
Professional investment management at no charge
Bypass realized capital gains on gifts of appreciated assets
Immediate federal income tax charitable deduction
Estate tax savings
Create a future gift that reflects your vision for MCHF
Types of Life-Income Gifts
Charitable Gift Annuities
A gift annuity is a simple contractual agreement between you and the Foundation* where in exchange for an irrevocable transfer of assets including cash or appreciated securities, the Foundation agrees to pay one or two annuitants payments for life. You receive a federal income tax deduction the year the gift is made since a portion of the gift will be used for charitable purposes and a portion of each annuity payment received is tax-free. This is the simplest life-income gift and also delivers the highest annual payments and significant tax benefits.
*Comerica Charitable Trust or its affiliated foundation, Comerica Legacy Foundation, creates and administers the gift annuity contract.
Deferred Gift Annuities
This is a life-income gift designed to build younger donors’ retirement earnings. When you defer the start of your annuity until your retirement or a later "trigger" date, you receive a large income tax deduction now and an additional source of income when you need it later.
Charitable Remainder Trusts
Charitable Remainder Trusts are powerful life-income gifts because of the financial and estate-planning flexibility they offer. A Charitable Remainder Trust created during your life takes advantage of income, capital gain, and estate tax savings. The asset is transferred to the trust, which provides an income stream to the named beneficiary(ies) for his or her lifetime or a term of years, with the remainder interest passing to MCHF to be used in accordance with your wishes.
Charitable Lead Trusts
Charitable Lead Trusts are gift plans that permit you to place assets in trust to allow specified payments to MCHF for a designated period of time. At the end of the Trust, the assets go back to the owner or another designated individual. A Charitable Lead Trust allows you to make a significant charitable contribution while reducing the tax cost of transferring assets to family members.
Determining the right plan for you depends on a number of factors including your age, type of assets, income needs and financial objectives. We will work with you and your professional advisors to design the right charitable gift plan that will benefit you, your family and the children at MCH.