2303 Annuity Contracts and Other Life Income Agreements
Subject Area: Gifts and Private Grants
Responsible Office: Vice President of Development and Alumni Relations
Originally Issued: January 1949
Revised: July 1984
Refer Questions To: Denise Chan Gans, 773-702-0882
Purpose: To provide guidelines governing the acceptance and management of annuity contracts and life income agreements.
- The University is authorized to accept all forms of life income gifts such as unitrusts, annuity trusts, gift annuities, and pooled income fund gifts.
- Recognizing that any University officer can sign a life income document on behalf of the University, it is preferred that either the Vice President and General Counsel or Chief Financial Officer so sign.
- No unitrust or annuity trust shall be written for less than $50,000 and no pooled income fund or gift annuity shall be written for less than $10,000.
- No life income gift shall have a beneficiary younger than age 50.
- Payout rates to beneficiaries will be determined by the Investment Office.
- It is recognized that in all cases gifts shall be accepted which provide reasonable assurance that the University shall ultimately realize a substantial portion of the initial gift.
- A gift annuity is a part gift and a part purchase of an annuity from the University. Therefore, rates paid to annuitants should be computed to produce an eventual gift to the University of approximately 50% of the amount originally distributed to the University.
- Annuity funds may be invested in an Annuity Merger or separately invested as the Investment Office so determines.