A bequest made through a will is the most common type of planned gift, largely because it enables you to make a substantial gift to Michigan Hillel without drawing from your assets during your lifetime. Bequests, can offer important estate tax savings and we be structured in the form of distributions of cash, securities, or real estate. (Note: planned gifts of personal property such as art or books can only be accepted by Michigan Hillel if a written appraisal has already been conducted) Traditional approaches to making a bequest include the following:
- Percentage Bequest: You specify a certain percentage of the total estate be given to Michigan Hillel.
- Fixed Dollar Bequest: You designate a specific amount of money be given to Michigan Hillel.
- Residual Bequest: You specifies that, after bequests to heirs and beneficiaries, all remaining assets of your estate be given to Michigan Hillel.
- Contingent Bequest: You specifies that, if all heirs and beneficiaries named in the will are deceased, your estate be given to Michigan Hillel.
2. Life Income Gifts
A life income gift offers an excellent alternative should you wish to make a significant gift to Michigan Hillel without sacrificing any income from your assets. In some cases, a life income gift can actually increase your income while ensuring a future gift to Michigan Hillel. Under a life income gift, you transfer ownership of cash, securities, real estate, or personal property to Michigan Hillel. You retain lifetime income from the asset transferred, receive current income tax savings, and may avoid capital gains if the asset appreciates in value. Life income gifts include charitable gift annuities, pooled income funds, and charitable trusts.
3. Charitable Gift Annuities (Guaranteed income for life)
Charitable gift annuities have become increasingly popular with donors who wish to make a significant, long-term gift to Michigan Hillel, but also wish to receive an annual income. Should you choose this gift structure, your irrevocable gift (min. $15,000) will be invested by the Jewish Federation of Metropolitan Detroit (JFMD) for Michigan Hillel and an annual return- based upon the amount of your gift, life expectancy, market returns, etc. – is provided to you in quarterly distributions for the remainder of your life. If you are over age 70, an immediate payment annuity may make good financial sense for you.
4. Charitable Lead Trust
Charitable lead trust is both an income and wealth transfer vehicle, enabling you to transfer income-producing assets to the next generation at a significantly lower tax cost, while also meeting your philanthropic objectives for Michigan Hillel.
5. Charitable Remainder Trust
A charitable remainder trust is a way to create a legacy in your name and receive income from the trust for life or for a term of years.
6. Life Insurance
Gifts using life insurance may be made in two ways: 1) you may name Michigan Hillel as owner and beneficiary of either an existing or new policy or 2) you may use life insurance to name Michigan Hillel as the simply the beneficiary of your policy. In the latter case, since Michigan Hillel does not own the policy, the gift is considered revocable, or without immediate tax savings and may be changed at any time. That said, this type of gift may be eligible for a federal estate tax charitable deduction at the time of your passing.
Endowments are funds held in perpetuity. The interest they generate annually is used to support programs or projects agreed upon between you and Michigan Hillel. Endowments provide exceptional stability and security for Michigan Hillel as they guarantee income for support of our mission. Depending on the program or project you wish to endow, some endowments may be created with a minimum contribution of $25,000. Endowments may also be created and funded through a bequest or other forms of legacy gifts. This particular gift lends itself well to being named in your honor or someone near and dear to your heart. At present, through JFMD, endowment funds are distributed to Michigan Hillel quarterly at a rate of 5%.
Contact Stacy at 734-769-0500 or [email protected] to discuss further.