Banks and life insurance companies typically sell commercial annuities. They provide the owner with fixed or variable income based on commercial rates of return. Because commercial annuities are subject to income and estate taxes, they are often considered among the best assets to leave to charity. The best way to give a commercial annuity in support of our work after your lifetime is to name us as beneficiary.

Upon withdrawal, even after death, a distribution from a commercial annuity will be subject to federal income tax and applicable state income tax. By naming us as beneficiary, Diocese of San Jose can receive your commercial annuity completely tax-free and any assets contributed to DSJ in this manner will result in a charitable deduction and help reduce any estate tax your estate might incur.

Making this gift is as simple as updating your beneficiary form with your bank or insurance company. You can designate us as the primary beneficiary for a percentage or specific amount. You can also make us the contingent beneficiary so that we will receive the balance of your policy only if your primary beneficiary doesn’t survive you.

Next Steps

Contact Joe Naylor at (408) 983-0250 or jnaylor@dsj.org for additional information on commercial annuities.
Seek the advice of your financial or legal advisor.
If you include DSJ in your plans, please use our legal name and federal tax ID.

Legal Name: (LegalName)
Address: (LegalAddress)
Federal Tax ID Number: Please contact us for our federal tax ID number.

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 examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results.