Charitable giving estate plans
Solidify your legacy within the Jewish community
O ne of the foundations of Juda-
ism is tzedakah; it is a mitzvah
to help and give charitably to
the poor and disadvantaged. Jewish law
asks everyone to give one-tenth of their
income to the poor (Leviticus 25:35
and Deuteronomy 15:7-8). You can
support your personal and family values
and traditions with long-term charita-
ble giving goals.

Planned giving,
the mechanism for
planning future
charitable gifts
or donations, has
numerous advan-
tages. As a donor,
you receive tax
benefits and the
Allison L. Kierman
ability to preserve
your legacy by supporting your com-
munity and values. For charitable orga-
nizations, planned legacy gifts provide
long-term financial stability by allowing
the organization to weather economic
highs and lows, understand ongoing
assets and make long-term growth or
building plans.

Charitable giving
estate plans: There
are multiple ways
to give to charity
through an estate
plan, including des-
ignating a charitable
beneficiary on a life
insurance policy, giv-
ing your retirement
plan assets and gifting
real or tangible per-
sonal property. Two
of the most common
methods of charitable
giving are through
bequests and charita-
ble remainder trusts.

Bequests: Bequests
are gifts made by will
and can be made to an
organization’s general
fund for the organiza-
tion to use as it sees fit
(which provides the
most flexibility for the
organization), or you
may specify that the gift
only be used to support a specific pro-
gram or project. A bequest is an effective
estate tax planning tool as a charitable
deduction is allowed for the entire
amount of the gift.

Charitable remainder trust: To
create a charitable remainder trust,
you set up a trust and transfer the
donated assets to a tax-exempt, IRS
approved-charity. Often the charity
serves as the trustee and manages or
invests the trust’s assets so it will pro-
duce income. You, or another benefi-
ciary, can receive all or a portion of
the income generated to continue to
meet your financial needs. At the end
of the specified lifetime or term for
the income interest, the trust assets
transfer entirely to the charity. Chari-
table trusts are beneficial to donors,
as establishing such a trust generally
entitles you to claim an income tax
charitable deduction.

Legacy building: A primary benefit
of charitable giving is legacy building
for you and your family, as well as your
chosen charitable organization. Many
local organizations have started life and
legacy committees or planned giving
campaigns to secure their financial
futures. Often in exchange for generous
giving, organizations recognize dona-
tions and support. Depending on the
organizations and size of the donation,
you may be able to designate a gift,
building, program, endowment or fund
in your family’s name. Organizations
also are creating legacy clubs or other
donor groups to allow you to stay con-
nected and involved in the organiza-
tion, track the progress and status of a
planned project or building, and social-
ize and network with other members of
the group.

Discussions with an estate plan-
ning professional and your designated
charity can help you identify the best
mechanism and timing for charitable
gift giving.

Allison L. Kierman is the managing partner of
Kierman Law, an Arizona estate planning law firm.

Visit kiermanlaw.com.

Twelve Jewish Valley nonprofits are participating in the Jewish Community Foundation of Greater Phoenix's Life & Legacy pro-
gram, which focuses on securing end-of-lifetime commitments from donors. To date, the program has secured 628 declarations
of commitment from 467 donors with an estimated future value of $21.6 million.

Photo by Ken Brown Photography
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