Can You Have Multiple Charitable Gift Annuities?The simple answer is that yes you can have multiple charitable gift annuities. The best way to set up a situation like this is to use entirely separate property for each separate charitable gift annuity and also ensure that each is designated for a different charity. This will help keep down confusion later on. However, if you are wishing to use the same assets to fund multiple charitable gift annuities then you will not be able to set it up this way. Each asset must be held in trust by a single trust or annuity; you cannot split a single asset up amongst multiple trusts or charitable gift annuities. As you can imagine having multiple gift annuities can be a very complicated process and often most people decide that it is simply much better to instead create one larger trust that includes all beneficiaries that they wish without the hassle of multiple charitable gift annuities.
When you are using a charitable gift annuity there are certain guidelines that must be followed for each annuity such as payout rate, which is determined, based upon information such as the donor's age, and the exact policy of the charity you are donating to. However, with each charitable gift annuity that is created there are some tax advantages that can be grasped, it is important to decide if these tax advantages are worth the time and effort to set up the trust. It is also important to remember, that all charitable gift annuities are permanent, you cannot cancel them later because you wish to change your mind. Therefore, it is best to ensure you are positive. If you are unsure about a particular charity then perhaps waiting to create their own separate charitable gift annuity is the best option you have. A quick consultation with a financial planner or a financial attorney can often help you identify your best options that will be able to help you keep as much of your money as possible rather than paying large fees, penalties, and tax rates. If you have questions feel free to discuss them with your chosen professional. With proper planning and a good trustee, it is possible to be very successful with multiple charitable gift annuities and ensure that all of your wishes are followed exactly rather than everything being lumped together into a jumbled mass that could easily cause confusion because of the number of beneficiaries. Remember, a bit of effort into planning can often ease some of the hassles and burdens that can appear later on in the actual management of your charitable gift annuities and will be well worth the effort. |