Planning a Gift
Bryn Mawr Legacy: A Gift for Learning, A Gift for the Future
Deferred Gift Annuity
A Deferred Gift Annuity is a simple contract between you and Bryn Mawr College. In exchange for your gift of cash, securities, or other assets, Bryn Mawr College agrees to pay one or two beneficiaries you name a guaranteed fixed sum each year for life, with payments starting at least one year after your gift. The older the beneficiaries are at the time of gift and the longer payments are deferred, the greater the fixed income Bryn Mawr College can agree to pay. Individuals who are at least 50 years old can establish a Deferred Gift Annuity in which payment of income is deferred until age 65 or older. The minimum gift amount is $10,000.
In most cases, part of each payment is tax-free, increasing each payment's after-tax value. If you give appreciated property the capital gains tax liability can be spread out over your lifetime rather than all due in the year of your gift. Payments are usually made in quarterly installments.
- You will qualify for a federal income tax deduction. Note that deductions for gifts of long-term appreciated property will be limited to 30% of your adjusted gross income and gifts of cash and non-appreciated property will be limited to 50% of your adjusted gross income. You may, if necessary, take unused deductions of either kind over the next five years, subject to the same 30% or 50% limitation.
- The beneficiaries you name will receive fixed annual income for life, guaranteed by the general resources of Bryn Mawr College, starting in the year you choose.
- If you fund the annuity with an appreciated asset, you will incur tax on only part of the gain. If you name yourself as an beneficiary, this tax will be spread out over many years and the first installment will not be due until after you receive your first payment.
- Your estate may enjoy reduced probate costs and estate taxes.
- You will provide generous support of Bryn Mawr College.
For information on deferred gift annuities, contact:
Director of Major Gifts and Gift Planning