How many annuitants can a Gift Annuity have?
You can have one or two annuitants, if both are 50 or older. Spouses who wish to ensure that both will enjoy income for life often choose a two-life annuity. With a two-life annuity, income payments extend over both lifetimes. Consider James and Jane Smith. They want to establish a $10,000 gift annuity. James Smith is 76. A single-life annuity in his name would pay him $830 annually for life based on an 8.3 percent rate. His tax deduction would be approximately $4,100. Jane Smith is 65. A single-life annuity in her name would pay her $700 annually for life based on a 7 percent rate. Her tax deduction would be approximately $3,100. A two-life annuity covering James and Jane Smith would pay $680 over both lifetimes based on a 6.8 percent rate. The tax deduction would be approximately $2,700.
