Israel Soldiers Gift Annuity
Through our Israel Soldiers Gift Annuity you can receive a high fixed rate lifetime income (for one or two individuals) and receive a valuable tax deduction, all while securing the wellbeing of the brave men and women who protect our country.
What is a Gift Annuity?
A gift annuity is a simple agreement between a donor and Friends of the IDF. In exchange for cash or marketable securities, Friends of the IDF agrees to pay a fixed rate lifetime stream of payments to you and to a survivor, if you wish. The program is regulated by the insurance laws of New York and other states in order to assure that the payments to annuitants are protected.
Sample annuity rates currently offered by FIDF:
Illustration of one-life rates. Two-life rates also available.
Rates as of Janaury 2015. Subject to change.
It’s easy to establish an Israeli Soldiers Gift Annuity with us. Contact us as provided below and we will send you a no cost no obligation illustration of the proposed gift annuity for your review. The illustration will include the proposed fixed lifetime annuity rate, annuity payment, income tax charitable deduction amounts and other details of the annuity. If you contribute appreciated securities you will also enjoy savings on capital gains tax. Once you decide to proceed and make your contribution in cash or marketable securities, an updated and signed gift annuity agreement will be delivered to you. You decide how often you would like to receive the annuity payments - monthly, quarterly, semi-annually or once a year, and they can be sent by check or directly deposited into your bank account. The annuity is administered and paid through a custodial account we maintain for your benefit at a highly regarded financial institution.
Charitable Gift Annuities are ideal for people who want to help with the soldiers while at the same time receive secure, high, fixed-rate lifetime income in times when commercial interest rates are low.
Israel Soldiers Charitable Remainder Unitrust
A Charitable Remainder Unitrust is a great way to make a significant gift to FIDF while receiving back a fixed rate of income for life and avoiding tax on capital gains at the time of contribution. If you have highly appreciated securities or real estate, an Israel Soldiers Charitable Remainder Unirust enables you to avoid tax on the long term capital gain when the property is contributed and sold in the trust. A lifetime fixed-rate is set out in the trust, often higher than what the property was earning when you owned it. Because the property transferred will be used for charitable purposes in the future, you may also claim a portion of the value of the contributed property as a current income tax charitable deduction. In addition, you have now removed the property from your estate so there will be no estate taxes. At the end of the trust period, the amount that remains in the trust passes to Friends of the IDF.
FIDF will work with you and your professional advisors to establish your Charitable Remainder Unitrust and can provide illustrations and calculations for your review.
Gifts In Your Will
After providing for your loved ones, a valued way of providing for Israel’s soldiers is to leave a gift to FIDF in your will or through your revocable living trust. Your bequest may be in a specific dollar amount or may be stated as a percentage of your estate or trust property. The entire amount is excluded from estate or gift taxes. Our recommended bequest language is as follows:
"I give and bequeath unto FRIENDS OF THE ISRAEL DEFENSE FORCES, whose principal office is located at 1430 Broadway, Suite 1301, New York, NY 10018, and whose federal employer identification number is 13-3156445, [the sum of $______] OR [___% of my residuary estate] to be used by it for its
Bank, Brokerage Accounts -
Many people prefer to simply designate FIDF as a beneficiary to receive all or part of the balance in one or more of their bank or brokerage accounts immediately upon their passing.
Payable-on-death (POD) or Transfer-on-death (TOD) instructions offer one of the easiest ways to keep money -- even large sums of it -- out of probate. All you need to do is fill out a simple form, provided by the financial institution, naming FIDF to receive all or part of the money in the account at your passing. As long as you are alive, FIDF has no rights to the account. You can spend the money, name a different beneficiary, or close the account.
IRA, 401K -
Designate FIDF as a partial or full beneficiary of your IRA or 401k. FIDF receives the funds immediately upon your passing and the funds do not enter into the estate.
Since retirement accounts may be subject to both estate and income taxes at death, this is often used by individuals who want to avoid the potential “double tax”. In that way, you will be making your charitable gifts at the end of your lifetime from the most heavily taxed assets in your estate, freeing up your assets that are not subject to end-of-lifetime income tax (your “single-taxed” assets) for distribution to heirs or others.
- Life insurance can represent a significant gift to FIDF at a relatively low cost to you. Make a gift of life insurance by contributing an existing policy that you no longer feel the need to keep, or by buying a new policy on your life with FIDF named as the owner/beneficiary. If the policy is not paid up in full when gifted, subsequent premium payments will be made by FIDF from tax deductible contributions that you make periodically over the life of the policy.
This is a great way to make a major gift that might otherwise be unaffordable. Your gift is not subject to probate publicity or delays and enables you to leave a legacy for future generations in the form of an endowment, if desired. For younger people, this is an ideal way to make a major future gift at low cost. Tax deductions are available for many popular types of life insurance gifts.
FIDF Endowment Funds
You can make a lasting impact on the lives of Israel’s soldiers by establishing an FIDF endowment fund. Such a fund will enable FIDF to care for the soldiers for many years to come. You can establish an endowment fund with FIDF for a specific program or purpose or to fund FIDF's general charitable activities.
These funds may be named for you and/or your family and are an excellent way to create a family legacy while making a lasting impact on the lives of Israel's soldiers.
FIDF can offer suggestions as to how your endowment fund can ensure the continuity of one or more programs that ease the lives of the brave soldiers who are, first and foremost, our children.
For more information on these tax advantaged planned gift ideas, and for a no-cost, no-obligation illustration of what you can expect from an Israel Soldiers Gift Annuity or Charitable Remainder Unitrust based on your age and circumstances, please contact Jonathan E. Bernstein at Jonathan.Bernstein@fidf.org
or 888-421-6285 or by returning the Information Request Form
.Information contained herein is not intended to represent legal or tax adviceor to substitute for such advice. Individuals are urged to consult with their professional advisors when considering charitable planned giving transactions.