A Deferred Gift Annuity gives you planning flexibility. Payments to you or to your beneficiary can be started many years after your initial donation. Deferred Annuities help you plan for retirement or for special future needs such as assisting your family or missionaries with future education.

By establishing a Deferred Annuity, you benefit from:
 

• A larger current charitable deduction
• An increase in the payout rate that is guaranteed

Three Choices

Three types of Deferred Annuities provide maximum flexibility in your charitable planning: Deferred Annuity, Flexible Deferred Annuity and College (or Term of Years) Annuity.

• Deferred Annuity––The future payment start date is fixed when the annuity agreement is signed.

Example: A couple, ages 65 and 62, contribute $20,000. They considered these annuity choices and selected the 10-year Deferred Annuity:

1. A Current (Immediate Payment) Annuity
2. A Deferred Annuity, beginning income payments in five years
3. A Deferred Annuity, beginning income payments in 10 years

• Flexible Deferred Annuity––A deferred payment date is selected, while reserving the right to start payments in a range of dates, earlier or later. This flexibility can help if, for example, you have not yet decided when you will retire, or if the ministry needs extra time to sell property that you are gifting to fund the annuity.

Example: A couple, ages 65 and 62, decide they want their deferred payments to begin when they turn 75 and 72. However, they also want the option of choosing an earlier start date (e.g., when they are 70 and 67) or a later start date (e.g., when they are 80 and 77).

• College (or Term of Years) Annuity––The future payment start date is arranged to coincide with an identified term of school years, and the usual annuity lifetime payments are grouped and paid during this period of education. Grouped annuity payments can also be used in other ways––for example, to provide payments in years when special project funding is needed for field ministry.

Example: A donor establishes a college annuity for the nine-year old daughter of a missionary family they have been supporting for many years. The daughter’s parents or guardian elects that four annual payments will begin when the girl turns 19.

For further information and assistance, please contact Diane Arndt or Steve Hoffman of our Gift and Estate Design services team.

Phone: 1-317-881-6755 ext. 334 (Diane Arndt)

E-mail: shoffman@omsinternational.org, or darndt@omsinternational.org

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