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The Key to Leaving a Lasting Legacy
Surveys show that only four out of ten Americans have a current will. By making a will, you are able to improve and stabilize the financial security of yourself and your family, and can also make a difference by giving a gift to a charitable organization. Many of our supporters make charitable gifts by naming the Springfield Jewish Community Center as a beneficiary in their will, trust, annuity, life insurance policy, retirement plan or IRA .
Click on a link below to learn more about -
Why have a will?
A will is extremely important for many different reasons, it can:
- Permit you to appoint the persons who will handle your estate or serve as guardians to your children.
- Designate who will receive the property you have accumulated over your lifetime.
- Set up a trust that provides financial security and money management for family members.
- Assist friends, worthwhile causes, institutions and others that the law permits.
- Minimize estate taxes and other costs that could possibly deplete your estate of vital assets.
- Allow you to memorialize a special person in your life.
Creating a will is neither difficult nor expensive. Yet, the rewards are great indeed, both in peace of mind and in personal satisfaction of knowing you have helped future generations.
A bequest is for you if ...
- You want to help ensure our future viability and strength.
- Long-term planning is more important to you than an immediate income-tax deduction.
- You want the flexibility of a gift commitment that doesn’’t affect your current cash flow.
There are several different ways in which you can make a bequest:
A General Bequest - you designate that athe JCC is to receive a specific dollar amount
A Specific Bequest - you designate specific property to the Springfield JCC.
A Percentage Bequest - is expressed as a percentage of an estate rather than a specific amount. If fortune changes the size of the estate over the years, the bequest will change in the same proportion.
A Residuary Bequest - your estate will pay all debts, taxes, expenses, and specific bequests. The remaining amount--the residue--will be transferred to the Springfield JCC.
A Contingent Bequest - You can ask that the Springfield JCC receive all or a portion of your estate only under certain circumstances. For example, you can name the JCC as a beneficiary of your estate only if there are no surviving close family members. Childless couples sometimes provide for the entire estate to go to the surviving spouse, or if the spouse does not survive, to the JCC.
If you already have a will:
To make a change, a simple codicil (amendment) often is all that is needed to add a charitable designation. It only takes a couple of minutes to leave a lasting legacy.
A charitable gift annuity pays you guaranteed income for life at an attractive rate, offers tax savings, and frees you from investment worries and responsibilities. Through your annuity you can make a meaningful gift to support the services and programs of the Springfield Jewish Community Center.
Your Gift Annuity offers five distinct benefits:
- Personal Satisfaction - It feels good to make a gift of lasting significance to aid those in your area.
- Income for Life - Attractive income rates are available for various gift options.
- Tax Deduction Savings - A large part of what you transfer is deductible.
- Tax-Free Income - A large part of your annual payments are tax-free return on principal.
- Capital Gains Tax Savings - When you contribute securities for a gift annuity, you minimize any taxes on your "paper profit."
A Charitable Gift Annuity is for you if...
- You want to make a significant gift to us and receive lifetime payments in return.
- You are 65 years of age or older.
- You want to maximize the payments you receive from your planned gift -- and you want to lower your income tax on those payments.
- You want the security of payment amounts that won’’t fluctuate during your lifetime.
- You also appreciate the safety of your payments being a general financial obligation of the institution.
A charitable remainder annuity trust is an attractive planning tool for the disposal of highly appreciated assets that provide a low return. You can avoid capital gains taxes, lower your income taxes, and earn higher returns while giving to the Springfield Jewish Community Center.
This life income plan is created by transferring assets to a trust that pays you (and another beneficiary, if you wish) income for life. At the end of the trust, the remaining trust assets are transferred to the JCC. A bank or trusted advisor can serve as trustee.
A charitable remainder annuity trust is for you if ...
- You want to make a major gift to the JCC while retaining or increasing your income from the assets you contribute.
- You hold appreciated stocks or bonds and want to avoid the capital gains cost of a sale.
- You prefer the stability of a fixed income.
- You want a larger charitable deduction for your gift than the unitrust option would provide.
- You hold tax-free bonds and want to continue to draw tax-free income from your gift plan
If you want to minimize estate and gift taxes on assets you intend to leave to your children or grandchildren, particularly when significant assets are expected to appreciate, you may want to consider a charitable lead trust.
Individuals with very large estates can use a charitable lead trust to benefit the JCC and pass principal to family members with little or no tax penalty. It works like this: You transfer assets to a trust that provides payments to the JCC for a term of years. Then the trust principal goes to your children, grandchildren, or others free of, or at greatly reduced, federal gift and estate tax.
A charitable lead trust is for you if ...
- You hold appreciating assets that you want to pass on to the next generation.
- You want to reduce your gift and estate taxes.
- Your planning objective is to preserve the value of your estate, not increase your income or reduce your income tax.
- You are looking for techniques that will give your family more of your estate over a longer period of time.
- You want your gift to provide a stream of income to us.
Many individuals today have large qualified retirement plans that have been growing tax-free for years. Once the owner begins to receive payments from the qualified plans, the distributions are taxed. The plans are also included in the owner’s taxable estate.
When you have accumulated funds in a company plan or an IRA beyond your needs for a comfortable retirement, a gift may be made to the JCC from such an account. This gift made by will, can lower estate taxes through the charitable deduction it provides.
A gift from your Retirement Account is for you if...
- You hold a 401(k), IRA, or other retirement plan.
- You prefer to make a gift to us through your estate plan.
- You want to balance your giving between providing for your family and for us.
- You want to ensure the most efficient distribution of the assets in your estate.
Some of our supporters no longer need their life insurance that was purchased years ago to provide for children or other family members. If that is your situation, please consider donating the policy to the Jewish Community Center. You may claim a charitable deduction for approximately the policy’’s cash value, and the proceeds are completely removed from your estate.
It is through the generosity of gifts like yours that people are served by the Springfield Jewish Community Center. We are providing this information as a service only. Please consult with your own tax advisor and/or lawyer when preparing your estate plans. The financial benefits of gifts to the JCC depend on your situation, but the opportunity to make a difference is always great.
Additional information can also be obtained by contacting Nancy Delson (413) 384-0335 or by contacting your personal tax advisor and/or lawyer.
Posted by jclark - March 24, 2009
Sep 4, 2010