Charitable Gift Annuity
Relevant Locations: Canada
Is a company: no
Is a proper noun: no
Notes: A form of planned giving.
- income stream
- charitable remainder annuity trust
Definition of Charitable Gift Annuity
- A planned giving vehicle where a donor agrees to transfer property or a sum of cash to a registered charity as a gift in exchange for a tax deduction and a lifetime stream of income from the charity in the form of an annuity. When the donor dies, the charity keeps the remaining funds. Also known as a "charitable remainder annuity trust."
Related Terms and Acronyms
- Tax Deferred Annuity (TDA) — Acronym, Important,
➥ More commonly known as a Tax Sheltered Annuity (TSA).
- A type of annuity where taxes are deferred until the annuitant decides to withdraw money from the annuity.
- Marital Deduction — Definition,
- For estate tax and gift tax purposes, a deduction that allows you to transfer assets to your spouse tax-free.
- Gift From a Family Member — Definition,
- A gift of cash, to a mortgage applicant from a relative by blood or marriage, which the applicant is not required to repay. In some instances it is necessary to provide a written statement to that repayment is not required.
- Private Annuity — Definition,
- An arrangement where one party agrees to transfer ownership of an asset to another party (usually a beneficiary) in exchange for lifetime payments.