No matter where we live or what language we speak, as contemporary Jews, our connection to the past plays a powerful role in our daily lives. We are ever more mindful of the implications and threats in recent history, making the words of the ancient Talmud significantly relevant today: “…As my ancestors planted for me, so do I plant for those who will come after me.”

I believe we have an obligation and a responsibility to ensure the future of our 120-year-old shul as well as the Jewish community here on the North Fork. To that end, I hope you will consider one or more of the many Legacy Gift options listed here that will benefit the shul and, at the same time, provide significant benefit for your heirs. Since most of the options for bequeathing a Legacy Gift are after lifetime, these gifts will cost you nothing today.

Legacy Giving, or planned giving, is another way to support our shul with cash, appreciated securities or stock, real estate, life insurance, a retirement plan, or a donor-advised fund. Legacy Gifts offer attractive benefits. I hope you will consider the following options:

  • Cash

Write a check or make a credit card payment.

Donor Benefits: There is an immediate tax deduction for the full value of the gift, and taxable assets are removed from the donor’s estate, delivering direct benefits to CTI.

  • Appreciated, Marketable Securities

Give a gift of appreciated securities that have been held for more than one year.

Donor Benefits: This gift bypasses capital gains tax; provides a tax deduction for the fair market value of the securities; and removes taxable assets from your estate.

  • IRA Charitable Rollover

Donors 70-1/2 years or older can make an IRA charitable rollover (up to $100,000 per year) to CTI. The IRA funds must be transferred directly to CTI by December 31 of the calendar year you are making the donation. Charitable rollover amounts could count toward the donor’s required minimum distribution, although these funds do not provide a charitable deduction.

Donor Benefits: This gift reduces taxes on amounts up to $100,000 from the donor’s IRA, and satisfies all or part of the required minimum distribution for the year.

  • Gift in a Will or Trust

Donors can make a bequest gift of specific property, a specific dollar amount, or a percentage of the estate and/or a designated asset. The estate will receive a charitable tax deduction for the amount of the gift, which may reduce the taxable portion of the estate. If the donor already has a will, an attorney can write a codicil to include the bequest.

Donor Benefits: This gift is simple to create; the estate receives a charitable tax deduction for the bequest, and the donor retains control of assets throughout life.

  • Life Insurance/Name CTI as Beneficiary

Donors can name CTI as a beneficiary and specify a percentage or the entire insurance policy as the legacy gift.

Donor Benefits: Donors can ask for a “Change in Beneficiary” form from their plan administrator, retain control of the policy; and may receive a charitable tax deduction after death. This gift is an opportunity to make a large gift at little cost.

  • 401(k) or IRA Retirement Plan Designation

Upon death, retirement plans are subject to both estate and income taxes, which means

up to 60% of retirement assets may go to the IRS; distributions to charities incur no taxes.

Donors can name CTI as a beneficiary and can specify a percentage or the entire account as the legacy gift.

Donor Benefits: Gifts of IRAs and other retirement accounts allow donors to make a gift to CTI while saving on estate and income taxes.

  • Charitable Gift Annuity

This gift provides one or two individuals who are 55 and older with fixed payments for life. The gift can be established with a simple contract between the donor and CTI. The donor transfers assets of cash or marketable securities to CTI and, in exchange, CTI promises to pay

one or two people for life. The payment rate depends upon the age of the beneficiary or beneficiaries at the time of the transfer; the older the beneficiary at time of gift, the greater the fixed payments. The donor may be subject to tax on the income stream. When the last beneficiary dies, the annuity’s balance becomes the donor’s legacy gift to CTI. A deferred gift annuity works the same way, but starts providing payments at a fixed date in the future (rather than immediately). Until payouts begin, the annuity may grow in value, providing a higher payment rate.

Donor Benefits: This gift guarantees annual payments for life regardless of market conditions; a portion of the income may be tax-free; taxable assets are removed from the estate; some portion of capital gains may be bypassed with gifts of appreciated property, and the donor is entitled to an income tax deduction in the year the gift is made.

 

  • Charitable Remainder Trust

Donors can transfer assets (e.g., publicly traded securities, real estate, cash) to a trust that pays either a fixed amount (annuity trust) or a fixed percentage that reflects the size of the trust (unitrust) to the donor and/or their designated beneficiaries. This enables donors to make an irrevocable gift that produces payments for life or a set term for themselves and/or their beneficiaries, with the remainder of the donated assets going to CTI. At the end of the term or upon death of the beneficiary or beneficiaries, the trust terminates, and the assets in the trust pass to CTI as a legacy.

Donor Benefits: This gift offers a charitable income tax deduction for a portion of the gift, a payment stream, and removal of assets from the donor’s estate, which may reduce estate taxes.

If you would like to discuss any of these Legacy Gift options, please contact me at jkweiner@icloud.com so that we can schedule an appointment.

—Judith K. Weiner