Caring for Other People's Children
Not many people would offer to care for someone else's children. But Jim and Masako Falk have been doing just that since the mid-1990s, through their generous support of Children's Hospital and Health Center.
Although they have no children, they made their first gift to help children by establishing a charitable remainder unitrust, which they funded with real estate; not once, but three times over the years. In 2002 Jim and Masako used real estate again, this time to fund a charitable gift annuity to support Children's.
Jim and Masako receive lifetime income payments from their charitable remainder unitrust and charitable gift annuity, while patients at Children's benefit from their generous philanthropy. "I chose to create the trust because of the tax benefits," admits Jim. "I also felt I could control the funds better and get a better return on my investment." When they looked into using a five-unit apartment building to fund a charitable gift annuity, Jim and Masako realized the advantage of receiving fixed income payments over their lifetimes based on rates set by the American Council on Charitable Gift Annuities; in their case, an effective rate of 6.8 percent at the time.
The Falks consider Children's their "charity of choice." They've attended several Children's Circle of Care activities and other events geared to inform donors, and they enjoy being part of Children's family of donors. "Since we don't have children of our own," said Jim, "we're delighted to be able to leave a legacy for other people's children." The Falks' generosity aids in providing the San Diego community with an important pediatric health care resource; one for which parents are thankful.
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.