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Life Income Gifts

Charitable Gift Annuity

A gift annuity is an agreement in which a donor transfers assets in the form of cash or appreciated securities to Andover Newton in exchange for a fixed, lifetime annual income.  Some of this income is tax-free for a period of years and can be paid monthly, quarterly, or annually, depending upon the needs of the donor.  A gift annuity can also be set up to provide for a spouse or beneficiary.  There are income tax and capital gains benefits, and a possible reduction in probate costs and estate taxes.

The rate of return is based on the donor's age at the time of the gift, and if the income will be spread over more than one life, the rate will be lower.

The minimum gift in this situation is $1,000; the current maximum is $138,000, based on the fair market value of the Gift Annuity Fund. Your annuity can be managed professionally by one of our covenanted denominational bodies, the United Church of Christ or the American Baptist Church, USA.

Charitable Remainder Trust

Charitable Remainder Trusts provide a charitable deduction and an income to you and/or other beneficiaries for life or a fixed number of years.  At the end of the payout period, the trust principal passes to Andover Newton.  There are two types of Charitable Remainder Trusts -- the annuity trust and the unitrust.

Annuity Trust
The annuity trust pays out a fixed dollar amount regardless of how the trust assets perform.  This amount is determined at the time of the gift and no additional contributions may be made to the trust.
 
Unitrust
The payment rate from a charitable remainder unitrust is a percentage of the fair market value of the trust assets, and is determined at the time of the gift.  These assets are re-valued annually, providing the donor with a variable income.  The donor may make additional contributions to the unitrust.

Both types of trusts provide a charitable deduction, income tax and capital gains savings, and a possible reduction in probate costs and estate taxes.  A testamentary unitrust (established by a will), can result in significant estate tax savings as well as providing income for a beneficiary.

Trusts may be funded with cash, securities, or real estate, and income payments may be fixed or flexible. The minimum gift in this saturation is $50,000. Your trust can be managed professionally by one of our covenanted denominational bodies, the United Church of Christ or the American Baptist Church, USA.
 
Charitable Lead Trusts

The lead trust is the reverse of the other life income plans. Instead of the donor receiving an income for life from the trust, then the principal passing to Andover Newton, the school receives income for a designated time period, then the trust assets revert back to the donor or the donor's family. This type of trust can provide a large charitable deduction or gift and estate tax benefits, depending on how the trust is created.

The minimum gift in this situation is $100,000. Your annuity can be managed professionally by one of our covenanted denominational bodies, the United Church of Christ or the American Baptist Church, USA.

For more information, please contact:

Institutional Advancement
Andover Newton Theological School
169 Herrick Road
Newton Centre, MA 02459
(617) 831-2409
Email: institutionaladvancement@ants.edu

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