Income Producing and Other Giving Opportunities
Income-Producing Gifts
One type of gift plan gives income back to you. You are able to make a significant gift to Hillel during your lifetime yet use those very assets to provide income to yourself and your beneficiaries and in many cases generate a larger income than the assets used for the gift are presently earning for you. You may receive significant tax advantages, such as an immediate charitable income tax deduction, an avoidance of immediate capital gains taxes upon sale of appreciated assets, and eventual estate tax savings.
Gift with a Fixed Income
A charitable remainder annuity trust provides you with a fixed income each year. The dollar amount of the income is set as a percentage of the amount originally placed in the trust. The advantage of this plan is that your annual income is fixed for the term of the trust and does not vary with the value of the assets held in trust. No additions may be made to annuity trusts.
Gift with a Variable Income
A charitable remainder unitrust is one in which the income from the trust varies with the value of the assets held in the trust. As the value of the unitrust assets grows, the income paid to you or others you select increases proportionately. However, if the value of the assets declines, the amount of income will decrease also.
Creating an Income-Producing Gift
You can make such a gift to Hillel Yeshiva by irrevocably transferring securities, cash or other property to a trustee. The trustee then manages the investment and pays an income to you, your spouse, and/or other beneficiaries. The income payments continue for the beneficiary's life, or for a period of years. Thereafter, the remaining trust principal goes to Hillel Yeshiva, to support a program of your choosing.
Other Giving Opporutnities
Charitable Lead Trusts
The Charitable Lead Trust is essentially the opposite of the remainder trusts. Instead of you, the donor, receiving income back from a trust, in a lead trust Hillel receives the income interest for a specified number of years. At the end of the trust, the remaining principal is returned to the donor or, more commonly, another family member. The income that is paid to the school may be either a fixed amount (an annuity trust) or a fixed percentage of the annual value of the trust (a unitrust). At the time the trust begins, you or your estate will receive a charitable gift or estate tax deduction for the percentage payable to Hillel. A lead trust can be especially valuable in estate planning, because although income tax benefits of such a trust are often minimal, the estate and gift tax savings may be significant. Therefore, a charitable lead trust is often set up to begin upon the death of the donor. It may have extra value to family members when the assets are likely to appreciate substantially in value over the life of the trust.
Real Estate
Appreciated real estate may be one of the best gifts that can be made to the Hillel Yeshiva. Often,your return from the property is small and operating costs, such as taxes and maintenance, continue to rise. Should you sell the appreciated real estate, you will have to pay capital gains tax on the appreciated amount, considerably reducing your net gain from the sale. If, however, you make a gift of the real estate to Hillel, you may be able to deduct the full market value of the property, including all appreciation.
Please note that there are some legal requirements that you will need to meet in order to make a charitable gift of real estate. The Development office will be happy to assist you and your attorney of other professional advisor to comply with these requirements.
For more information about this and other methods of giving to Hillel Yeshiva, please call the Marketing/Fundraising office at 732-493-9300 x350.
Note: Hillel Yeshiva is an educational institution and does not provide tax, legal, or financial advice. Any document or information shared by our staff is intended to be educational. We strongly encourage all of our donors to seek counsel from their own legal and financial advisors. Please know that any information or documents shared by the development staff cannot be used to avoid tax related penalties.
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