If you are considering a major gift, your gift of cash or stock in the form of a “life income gift” can significantly increase your income!

A life income gift allows you to transfer assets now, and yet continue to receive income from the cash, stock, or other property contributed. A life income gift can allow you to:

1. increase your income for life;
2. receive a generous charitable contribution deduction in 2006; and
3. if you contribute stock, avoid any capital gains tax on the appreciation!

A life income gift is often made through a trust arrangement called a "unitrust" or an "annuity trust". With a unitrust, you and/or your spouse (or another beneficiary) receive annually a fixed percentage of the fair market value of the assets in the trust. The income received will vary from year to year, based upon how the trust’s investments perform. With an annuity trust, you and/or your spouse (or another beneficiary) receive a fixed amount from the trust each year. This amount is agreed upon when you create the trust; it stays constant, no matter what happens with the stock market or interest rates.

If you have already considered a provision for us in your will, please note that a life income gift can often be preferable. Such a gift allows you to accomplish your goals during your lifetime-and in a tax-advantagous way.

This is only a brief introduction to some of the best tax-advantaged methods of giving.

We urge you to discuss your year end tax planning with your accountant or other professional advisor.