Charitable Giving

Client Scenario

Virginia and Stratton

Stratton and Virginia have been diligent subscribers to the Orchestra since they were in their 30s. They’ve witnessed the boom years when local corporate sponsors funded performances and brought tremendous talent to their city.

They also witnessed the lean times when corporate money dried up, and orchestra members faced dwindling salaries, and tough choices.

Their love for Dvorak, Ravel, and American composers like Aaron Copland and George Gershwin inspired them to earmark a gift to the orchestra. They hope their modest gift will help keep the company running so younger audiences may enjoy them for years to come.

Their advisor, Thomas, tells them that something like a charitable remainder trust in this case is unnecessary. Given the size of their planned gift, a trust structure is more than they need. He lets them know that a simple, low-cost, no-load variable annuity may help them easily achieve charitable giving their goals.

They fund the annuity with non-qualified assets and name the orchestra the sole beneficiary. When their estate is settled, those assets will transfer directly to the orchestra, tax free, without the hassles of probate.

And because the internal costs of the annuity are less than 100 bps, those assets will compound and grow more efficiently, tax-free, for the remainder of their lives—increasing the impact of their philanthropy.

Virginia and Stratton

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