As you plan for the future, it is easy to create your Jewish legacy for the Jewish charitable causes that are important to you. You can make a gift either during your lifetime or at the end of your life through your estate or trust.
Here are samples of the types of assets you can use for this purpose.
This is an ideal way to create a legacy at the end of your lifetime. Bequests are fully tax deductible for estate tax purposes and can be included in your will or trusts. Gifts may be stated in terms of a specific amount or asset, a percentage of one’s estate or the remainder of one’s estate after all debts, taxes, expenses and other bequests have been paid.
Gifts of securities held for more than one year are fully deductible, up to 30 percent of adjusted gross income, based on the fair market value of the gift. If the securities have appreciated they can generally avoid capital gains tax that would be due if the asset was sold by the donor.
Cash contributions are always accepted and are fully deductible up to 50 percent of a donor’s adjusted gross income.
Retirement Assets and Pension Plans
Retirement plan assets are excellent vehicles for creating your legacy. A simple and tax-wise way to avoid income tax and estate tax is by naming the Federation or one of its agencies as a beneficiary of your retirement account/pension. Retirement plans left to the children, grandchildren and other beneficiaries often are subject to these taxes.
Gifts of life insurance designating the Federation or its agencies as an irrevocable beneficiary or the owner and beneficiary of a new or existing policy is an excellent vehicle for creating your legacy. Donors are entitled to a tax deduction for the amount of the premiums or the cash surrender value of an existing policy.
Life Income Gifts
Donors wishing to make a gift that provides income for themselves or loved ones may establish a charitable remainder trust or a charitable gift annuity. These gifts pay income to the donor/named designee for life or a term of years. The trustee then distributes the remaining assets to the Federation for your endowment fund.
Gifts of real estate with good marketable title, no environmental problems and meeting minimum appraised value can be an ideal charitable gift.
Gifts of collectibles such as artwork, coins, and sports memorabilia receive charitable tax deductions dependent upon two factors: whether the times are related to the function of the charity and how the donor attained the items (purchased, inherited or received as a gift.)
Charitable Lead Trust
This is an excellent way to make a lifetime charitable gift, accelerate charitable deductions and maximize loved ones inheritance. Assets are transferred to a trust that provides an income to the Federation for a specified number of years. This income can establish your endowment. At the end of the trust term, the balance of the trust passes to heirs.