Another possibility lies in the creation of a College Annuity Option that operates in a manner similar to the Education Unitrust . For example, the parent or grandparent could purchase a deferred gift annuity for four-year-old Jimmy.

The annuity would not be payable until Jimmy reaches age 18, but there is a current income tax deduction for the gift value of the annuity. The annuity would normally provide lifetime income to Jimmy, but in this instance, by electing the College Annuity Option prior to the first payment date, he would instead receive the income in four or five annual payments.

While, in this case, the donor still must pay the capital gains tax, the charitable gift deduction should more than offset that tax. Depending upon how the contract is drawn, there may also be some effect upon the lifetime gift exclusion of the donor. These options may open an opportunity to assure your child or grandchild a quality Christian education at PLNU.

The College Annuity Option will provide funds at college-age to be used at the recipients’ discretion. The Education Unitrust can limit distribution for educational purposes and even designate a specific institution.

This is not presented as professional tax or legal advice.

You should consult a tax advisor about your specific situation. However, the Office of Planned Giving is prepared to project actual scenarios for you to take to your advisors.

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