A life income plan is an easy way to pursue philanthropic interests while providing for yourself and your family. A gift of cash, securities, real estate or other assets is made in trust or for the future benefit of Rush University Medical Center. The Medical Center, in turn, invests your assets and distributes the interest — income for a specified period of time or for life — to you and/or your beneficiaries.
Rush offers all of the standard life income vehicles, including the following:
- Charitable Gift Annuity (CGA) — This is the oldest, simplest and most popular of the charitable life-income plans. In exchange for an irrevocable gift of cash or approved marketable property to the Medical Center, Rush promises to pay generous, fixed payments to you annually (or more frequently, if desired). You may choose to begin receiving these payments right away (Immediate Payment Gift Annuity) or beginning at a future date of your choosing (Deferred Payment Gift Annuity). And because your gift is irrevocable, you will be entitled to an immediate charitable deduction from your income tax for a portion of your contribution.
- Charitable Remainder Trust (CRT) — Offering a high level of financial and estate planning flexibility, a CRT allows the charitable beneficiary (in this case, Rush) to receive the remainder interest. You fund the trust with cash or other assets and then you receive payments for a period of years or for life. (With a Charitable Remainder Annuity Trust, or CRAT, you receive fixed payments; with a Charitable Remainder Unitrust, or CRUT, you receive variable payments.) When the trust terminates, during life or at death, a charitable beneficiary receives the trust principal for the purpose you designated when you created the original trust agreement. Many forms of irrevocable trusts qualify for special tax consideration.
- Retained Life Estate — You can give your personal residence or farm to Rush now, while retaining the right to live there for the rest of your life or for a specified number of years. Nothing will change in your current use and maintenance of the property, but the irrevocable retained life estate arrangement will generate a sizable charitable income tax deduction for you in the year you establish the gift, while also reducing the size of your taxable estate. At the end of the retained life estate term (usually your lifetime or joint lifetimes), the property transfers to Rush University Medical Center.
For more information about these and other life income plans, speak with your personal financial adviser, and contact John Lowenberg, vice president of philanthropy, at (312) 942-2275.