Donor
Meet Tara & Billy
Donor
Meet Tara & Billy
Funding a CGA helps the Millers support the Foundation, avoid capital gains taxes and increase retirement income
An unexpected stock buyback left Tara and Billy Miller potentially facing a significant capital gains tax bill. After consulting their financial advisor and Brad Blandin, Bon Secours Mercy Health Foundation's Vice President of Charitable Estate & Gift Planning, they chose to donate the stock to the Foundation to fund a charitable gift annuity (CGA).
"We were interested in a CGA because the annuity payments feel like getting some of our money back, like a rebate on charitable giving that we would make, regardless," Tara says. "The buyback prompted us to explore ways to reduce taxes now without diminishing our retirement income in the future."
The Millers chose a flexible deferred CGA with Tara, the younger spouse, as beneficiary of the annuity payments for her lifetime.
"Tara and Billy are currently in their peak earning years and didn't depend on the stock for current income," Brad explains.
"Donating the assets to fund a CGA provided a partial income tax deduction now and allowed them to defer the large capital gain until retirement, when their taxable income will likely be lower."
"We're not sure when we want to retire," Tara shares. "It offers us flexibility between 60 and 70 to determine when annuity payments are most beneficial."
A deferred charitable gift annuity is also an attractive option for highly compensated individuals who want to boost their income stream during retirement and benefit from a tax deduction now, in their top earning years.
"Many high-income individuals max out all traditional retirement vehicles and are looking for additional ways to reduce taxes and supplement their retirement income," Brad says. "A deferred CGA offers these benefits and helps them accomplish their charitable giving goals."
For the Millers, the tax advantages and retirement income are fringe benefits. The real reward is in the joy of giving back to the health care professionals that have taken care of them and their loved ones over the years.
To learn how you can make an impact like the Millers, click here to get started today.
Gift Planning Resources
Charitable Gift Annuities
A CGA provides fixed payments to you or others you name for life in exchange for your gift of cash or securities. CGAs are easy to set up and you receive payments backed by the general resources of BSMH Foundation. Click below to learn more about how a CGA may be right for you.
Other Giving Tools
Smart gift planning allows you to make a difference now and for years to come. Explore the rest of our gift planning options and resources here. Click below to discover how to plan your legacy, what to give and how to give it in the way that is most beneficial to you.