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A Win – Win for Everybody College Gift Annuity for Grandchildren Judicial Watch donors have a variety of financial opportunities. The following is a hypothetical example of how a Judicial Watch supporter can help both themselves, their families and Judicial Watch. Jeanne Henry, 75, is a very concerned American and friend of Judicial Watch. Having grown up during the Great Depression, Jeanne developed certain attitudes toward money and savings. As a result, she saved consistently and conservatively during her entire life. Jeanne became concerned about her grandchildren’s educational future when she realized her daughter did not inherit her good example for saving. In fact, her daughter had no savings, and lived on a modest income. On a recent trip to the Midwest, Ted Meyers, Planned Giving Advisor to Judicial Watch, met with Jeanne and learned of her dilemma. In their meeting, she further told Ted that she wanted to make sure her two grandchildren – Billy, 10 and Suzy, 8 – had the money to go to college. She wanted the payments to be fixed and to be paid out over a four-year period for each grandchild. In short, she wanted to “lock-in” the benefits now. Jeanne did not want her grandchildren’s education to hinge on the future performance (or lack of performance) of the stock market. As a result of meeting Ted, Jeanne created a college charitable gift annuity (“CGA”) for each grandchild. Specifically, Jeanne transferred $100,000 cash for two college CGAs -- $50,000 for Billy and $50,000 for Suzy. Each college CGA would begin payout when the grandchild reaches 18 years of age. But more importantly, each payment would be a fixed annuity not subject to ups and downs in the market. When Billy is ready for college, he would receive an annual annuity of $17,207 or $68,830 over four years. In addition, $11,208 of each annual annuity payment would be tax free to Billy! When Suzy reaches college age, she would receive an annual annuity of $18,859 or $75,437 over four years. Of that amount, $11,223 will be tax free to Suzy each year! Jeanne was amazed with the results of the college CGA with Judicial Watch. In addition to providing significant funds for her grandchildren’s education, she also received an $11,000 charitable income tax deduction. To learn how you can create a similar plan for your children, grandchildren, sister or brother, you can contact Ted Meyers at Judicial Watch offices at 501 School Street, S.W., Suite 500, Washington, DC 20024 or by calling him at (202) 646-5172.
info@judicialwatch.org • 1-888-JW-ETHIC
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