Structured similarly to a unitrust, an annuity trust is individually managed. The annuity trust pays the beneficiaries a fixed income for their lifetimes, or for a term of years up to 20. As with a unitrust, the donor, or a financial institution may serve as trustee of an annuity trust.

Because of the costs of administering an annuity trust, InterVarsity suggests a minimum gift of $100,000. Unlike a unitrust, additional contributions may not be placed in an annuity trust.

An annuity trust's primary benefits are stable, predictable income and the professional portfolio management and diversification that come from converting a heavily held asset for a mix of bonds and equities in the annuity trust.

Comparison of Benefits, Unitrust and Annuity Trust

Assumptions:

• Beneficiaries aged 72 and 70,
• 30% income tax bracket,
• Holding $100,000 in stock with $50,000 cost basis

Comparison of benefits	Unitrust	Annuity Trust
Contribution:	$100,000	$100,000
Income Rate:	5%	5%
First Year's Income:	$5,000	$5,000
Future Income:	Variable	$5,000
Charitable Deduction:	$43,523	$37,630

Charitable Gift Annuities

Deferred Gift Annuities

Donor Advised Funds

Charitable Remainder Unitrusts

Charitable Lead Trusts

InterVarsity Christian Fellowship/USA^® does not offer legal or tax advice for your gift plans, but we do strive to provide helpful educational information and also strive to work carefully with you and your advisors to help you to accomplish your charitable goals.