We thank all our planned-gift donors for their generous support.
Many of the most significant gifts received by the Jewish Federation over the years have come as a result of a bequest in the estate plan of the Donor or as a directed distribution from the Donor's retirement plan assets.
There are many reasons, both tax and otherwise, why this type of gift is advantageous. First and foremost, you retain the ability to use your assets during your lifetime. In addition, a charitable gift made at death reduces one's taxable estate, potentially a 35% estate tax savings.
Designating a charitable bequest using retirement plan assets is especially beneficial as those assets were never taxed for income tax purposes. Income tax is payable in the year that the retirement plans are distributed to a beneficiary (a child or grandchild). If, instead, the retirement plan assets are designated to benefit the Jewish Federation of Metropolitan Detroit, there would be no income tax or estate taxes due, generating potential tax savings of 60% or more.
Let's look at a couple of examples of how bequests have made a significant difference to our Detroit Jewish community.
Tom Rosender, a retired attorney, after making provisions for his family, left the balance of his estate to the Jewish community. A long-time health club member, a portion of his bequest was earmarked to benefit the Jewish Community Center. The balance established a Perpetual Annual Campaign Endowment (PACE) Fund which provides a generous gift to Federation's Annual Campaign in Tom's name. It was his intent that his support for the Detroit Jewish community, which he loved, continue each year in the future. Tom's memory lives on because of his bequest.
Hannah Karbal and her husband, Morris, were generous supporters of numerous Jewish charities for years. Mrs. Karbal's estate plan provided that the residue of her estate was to be held by Federation in a permanent endowment with the income distributed among the charities that she loved and supported during her lifetime. Each year the Federation distributes funds in the Karbal's names to those agencies and organizations specified by her, including Federation's Annual Campaign, Yeshiva Beth Yehudah, Akiva, Hillel Day School and many others. These agencies know that they can count on Mrs. Karbal's support each year in perpetuity.
Leaving a bequest to the Federation is a thoughtful and tax beneficial way to continue your generous support of our Detroit Jewish community. Adding the Federation as a beneficiary of your IRA or retirement plan is as simple as filling out a beneficiary designation form available from your plan's administrator. It can be accomplished in a few minutes. Taking these steps will ensure that our Jewish community remains strong in its ability to respond to changing needs in the future.
Please consider making a generous bequest to the Jewish Federation or one of its agencies today.