beach3bum7[at]yahoo.com wrote:
- quote -

I'm not an expert, but I think the entire amount will be a tax
*deduction* for you. I don't know if you have to claim it as income
first since it was funded pre-tax, but if so the deduction would cancel
out the income tax if you itemize.

Bob

Ask the development office at the college. They certainly have
expertise in this kind of thing.

Dave

hello folks. I have recently inherited an annuity (about $60K) from my
mother, which was funded entirely with pre-tax money. She was already
receiving mandatory distributions from it, and once it's transferred to
me, I will have to take mandatory distributions (although the
distributions I will be required to take will be much lower than what
my mother had to take, since it will be re-set to my life expectancy).

I would like to donate it to her college, to establish a scholarship in
her memory (she attended her college on a full scholarship and was a
strong supporter of it when she was alive).

Would anyone have any pointers on the tax implications? From what
little I can see on the Web (mostly a 2002 post by Mr. Weldon), it
appears that if I donate the annuity while I am alive, the entire sum
will be taxable income to me, and the only way to make the donation tax
free would be for me to make the college the beneficiary and then die.

In the interest of avoiding both death and taxes, is there any other
way to donate the annuity to the college while I'm alive, without
triggering a huge tax bill for me? Can I exchange it into a gift
annuity (1035 exchange?), and then assign the payments to the college?
I realize that making a gift of pre-tax money will probably not be
tax-deductible, but I'd like to figure out a way to give the college
the whole sum if possible.

I imagine I could also keep the annuity, take the yearly distribution
and pay taxes on it, then donate the full yearly payment and get the
tax deduction, which would result in a net zero tax to me and the
donation of the full yearly distribution to the college. But in the
interest of keeping things simple, I'd rather give them the whole thing
now.

Thank you in advance for your kind advice--

Robert