Annuity Trust

• more concerned about investment stability than about inflation
• uncomfortable letting your future retirement dollars ride the ups and downs of the stock and bond market
• finding short-term money market rates to be too unstable and less than appealing

How it works:

• An annuity trust pays you a fixed dollar amount every year for the rest of your life.
• You have no investment worries or responsibilities. 
• After your lifetime (and that of a surviving beneficiary, if desired), the trust remainder is available to Childrens Hospital Los Angeles.
• You decide the annual amount to be paid to you each year from the trust.
• Then, you irrevocably transfer assets to fund your annuity trust.
• You’ll receive income from the investment of the assets.
• The income will be the same amount for the rest of your life, regardless of changing interest rates and stock market fluctuations.

Benefits include:

• A fixed income for life
• A way to increase income from a low-yield holding
• Freedom from investment responsibilities
• Avoidance of current capital gains tax on appreciated assets used to fund the trust
• An income tax charitable deduction in the year you establish the trust
• Avoidance of any current tax on capital gains (on appreciated securities)

NOTE:  Although the information set forth herein is believed to be accurate, you should consult your attorney or other tax advisor prior to taking any action.