Sample Annuity Termination Letter
Date
Re: (Name of Estate)
Salutation:
This letter is in response to your request for information regarding, (Name of Annuitant) deceased, (Date of death).
(Annuitant’s Name) established a gift annuity contract with (Charity Name) on (Date), a copy is enclosed. The Estate of (Name of Annuitant) can declare an additional deduction on the deceased annuitant’s final income tax return in the amount of ($0.00). This amount is the undistributed investment in contract.
The annuitant’s undistributed investment in contract equals the additional total amount of tax-free income and capital gain income that (he/she) would have received had (he/she) lived to receive all remaining distributions of tax-free income. This deduction should be reported as a miscellaneous deduction, not a charitable deduction.
If you require additional information, please do not hesitate to call me.
Sincerely,


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