Comparison of Life Income Plans
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Charitable Gift Annuity (CGA)
Charitable Remainder Annuity Trust (CRAT)
Charitable Remainder UniTrust (CRUT)
Income Tax Deduction
Donor receives an income tax deduction for the present value of the anticipated future charitable gift
Same as CGA
Same as CGA
Ability to Change Charitable Beneficiary
Once the CGA is established, the donor cannot change the ultimate beneficiary of the charitable gift
The donor can change the charitable beneficiary if the trust permits it
The donor can change the charitable beneficiary if the trust permits it
Determination of Annuitant or Beneficiary’s Income Amount
Fixed amount based on age of person(s) receiving payments
Fixed amount stated in trust document annuitant(s)
Stated percentage in trust document multiplied by the value of the assets in the trust
Availability of Deferral on Income Payment
A deferred GGA can be created, allowing the payment start date to be delayed to a specific date in the future
A deferred GRAT can be created, allowing the payment start date to be delayed to a specific date in the future
A deferred CRUT can be created, allowing the payment start date to be delayed to a specific date in the future
Taxability of Annuity (Income) Payments
A portion of income is deemed to be a return of capital, making it free of income tax
Income payments are subject to tax depending upon the type of income earned by the trust
Income payments are subject to tax depending upon the type of income earned by the trust
Term and Number of Annuitants
Can be a fixed term or for life. Can be created on one or two annuitants
Can be a fixed term or for life and can be created for multiple annuitants
Can be a fixed term or for life and can be created for multiple annuitants
Creation of Separate Entity
No separate entity is created - JCF issues an annuity contract to the donor
A separate entity must be created and is governed by a trust document
A separate entity must be created and is governed by a trust document
Administrative Fees
JCF charges its standard administrative fee
JCF charges its standard administrative fee
JCF charges its standard administrative fee
Assets Accepted
Most frequently, cash or securities - appreciated assets offer the best advantages to the donor
Most frequently, cash or securities
Virtually any asset can be accepted, including real estate, partnerships and tangible personal property