Mr. Hansen, is 85 years old and transfers $25,000 in cash to Carroll University in exchange for an immediate gift annuity of $2,375.00 a year for life. Of this amount, about $1,788.37 will be treated as tax-free return of principal for the next 6.8 years (his life expectancy) and only $586.63 will be taxed as ordinary income. Thereafter, the entire $2,375.00 annuity will be treated as ordinary income. In addition, Mr. Hansen realizes a current income tax deduction of about $12,847.00. 

Contact Marc R. Barbeau, senior advancement officer for gift planning and estate services, Carroll University, 100 N. East Ave., Waukesha, WI 53186, 262.524.7241 or mbarbeau@carrollu.edu.

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