PRINCETON generations

Ideas and Strategies from the Office of Gift Planning at Princeton University

Life Income Gifts: What You Need to Know

In addition to providing generous support, life income gifts can diversify your portfolio, increase your income, reduce or defer capital gains tax, and provide a federal income tax deduction. Donors often use the payments to fund their annual gift to the University, or to support a University priority during their lifetime. Beginning with their 50th Reunion, alumni can make their gift in this form through the Annual Giving Legacy program and receive class credit.

Charitable remainder trusts can be established with gifts of cash, securities, or real estate. The trusts will provide payments to you and/or your beneficiaries for a lifetime or for a specific term.

Unitrust payments vary depending on investment performance. Annuity trusts provide fixed payments determined when the gift is established. For both, the remainder becomes a gift to Princeton.

Charitable gift annuities can also be created from gifts of cash or securities. The University recently lowered the age to 55 for creating a gift this way, with a minimum age of 65 to begin receiving payments. The payment amount is guaranteed, and the remaining portion is a gift to Princeton.

Fast Facts on Life Income Gifts at Princeton

Charitable Remainder Unitrusts Charitable Gift Annuities
413 number of Princeton CRUT donors 160 number of Princeton CGA donors
total in gifts from those 413 donors $22.46
total in gifts from those 160 donors
98 CRUT donors who have designated their gifts for financial aid, scholarships, and fellowships 35 CGA donors who have designated their gifts for financial aid, scholarships, and fellowships
1952 Class with the most CRUT donors 1939 Class with the most CGA donors

Life income gifts allow you to make a gift to Princeton and create an income stream for yourself and/or a loved one.

Here are at-a-glance rates for two types of life income gifts to Princeton.

Guaranteed Annuity Standard Trust
Ages(s) Lives Immediate
Pay Rate
Deferred Rate
or Deferred
75 Single 5.80% 8.00% 5.00%
Joint 5.00% 6.60% 5.00%
71 Single 5.30% 6.80% 5.00%
Joint 4.70% 6.00% 5.00%
66 Single 4.80% 6.20% 5.00%
Joint 4.30% 5.50% 5.00%

Explore Tax-wise Gift Options Using Our Gift Calculator

Use our online calculator or call 609.258.6318.

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This entry was posted on October 27, 2017 in FALL 2017.



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The information presented is not intended as legal or financial advice. Please consult your own professional advisors to discuss your specific situation.

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