What type and value of gifts are accepted to fund an annuity?
Cash or assets (securities etc.) of $5000 or more. Q: Can I deduct the gift value of the annuity on my federal tax return? A: Yes, if you itemize deductions, you can deduct the gift portion on your tax return in the year of the gift. For cash gifts the deduction is up to 50% of adjusted gross income and up to 30% of A.G.I. For gifts of appreciated securities. Q: Is the payment the same if more than one person receives payments? A: Not usually. Annuity payments may be made for the lives of as many as two persons. Since the period of their combined life expectancies is typically longer than one persons life expectancy, the rate of payment will be somewhat lower. Payment rates for two-life annuities are available upon request. Q: Can I give securities rather than Cash to set up a gift annuity? A: Yes. Often the tax benefits are even greater if the securities have increased in value because you may avoid the tax on a portion of the capital gain in the property. If you give a low yielding a
