Ways to Give Planned Gifts

For further information, please contact
Thomas R. Giddens      
Director of Advancement
tom@cohenhillel.org 
Direct Office Line: 781.990.0133

Planned gifts are made in many ways, including:

Bequest by Will

Bequests to Hillel Academy are transfers of wealth by means of a will or a trust and take several forms such as a: 

• Specific bequest - a certain amount of cash, securities, or property. 
• Percentage bequest - a stated percentage of the donor's estate. 

Beneficiary Designations

One of the easiest ways for a donor to make a planned gift to Cohen Hillel Academy is to designate Hillel Academy as the sole or partial beneficiary of a an existing life insurance policy, a retirement fund or an Individual Retirement Account, or a stock or bank account. Simply file a beneficiary form directing that funds be paid upon death to Cohen Hillel Academy. 

In most cases, retirement funds and IRAs that are bequeathed to family members come loaded with income tax and estate tax consequences, while bequests of such assets to Hillel are not subject to such taxes.  

Charitable Gift Annuity

A charitable gift annuity is a transaction in which an individual transfers cash or property to Hillel Academy in exchange for it’s promise to make fixed annuity payments for life to one or two annuitants – often the donor or married donors. Hillel will hold the contributed funds or proceeds as a reserve to support the obligation to make these payments. The income payment of the annuity can commence immediately or can be deferred to commence at a later time such as retirement (in which case the annuity will be larger).  

Frequently, a motivation for funding a charitable gift annuity with appreciated property is that taxable gain is not recognized immediately. Rather it is spread out over the course of the payment of the annuity.  Another motivation is that the donor is entitled to an income tax charitable deduction for the present value of what is expected to remain for Hillel Academy after the annuity payments terminate.

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Charitable Remainder Trust

A charitable remainder trust (CRT) pays income to the donor and/or the donor’s spouse and/or the children of the donor, either for their lifetimes or for a term of years, and after such period the trust distributes its remaining assets to Cohen Hillel Academy. The CRT can be funded with cash, real estate, appreciated securities or other assets. The donor designates a trustee to manage the trust and invest the assets. 

Note that with a CRT, the source of income for the family is the trust assets, while with a charitable gift annuity the source of income is the general credit of Hillel Academy bolstered by the reserve of funds coming from the donor. 

As with a charitable gift annuity, a motivation for funding a CRT with appreciated property is that taxable gain is not recognized when the CRT sells the donated property. Rather, gain is suspended in the CRT with the possibility that it will become taxable to the CRT beneficiaries over the course of the payment of income to them.  Another motivation is that the donor is entitled to an income tax charitable deduction for the present value of what is expected to remain for Hillel Academy after the income payments terminate.

There are many types of CRTs, including a unitrust that guarantees payment of a percentage of the trust assets each year, an annuity trust where the payment is fixed regardless of the value of the trust assets, and a flip trust where the calculation of payments can change over the course of the trust. 

We will be happy to explore these various types with you to see which might suit your particular situation. 

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Charitable Lead Trust

A charitable lead trust (CLT) pays income to Cohen Hillel Academy either for the lifetimes of the donor and the donor’s spouse, or for a term of years.  After such period, the trust distributes its remaining assets to the donor’s children.  A motivation for funding a CLT is that, when it terminates, the assets passing to the donor’s children are not exposed to gift or estate taxes.  Another motivation is that the donor can either take an upfront income tax charitable deduction for the present value of the income stream expected to pass to Cohen Hillel Academy, or to forgo an upfront income tax charitable deduction and instead, annually deduct the payments to Hillel Academy against the CLT’s taxable income.

Retained Life Estate Contract

A gift to Hillel Academy of a remainder interest in a principal residence, vacation home or farm permits the donor to retain the use and any income from such assets for the donor’s and the donor’s spouse’s lifetime, after which time the asset passes to Cohen Hillel Academy and will be sold, the proceeds to be used by the school in accordance with the donor’s wishes. 

By deeding the remainder interest in the property to Cohen Hillel Academy while the donor is living, he or she is entitled to a significant income tax deduction in the year of the gift for the present value of what is expected to remain for Cohen Hillel Academy. The donor continues to be responsible for maintenance, insurance and taxes
on the property. 

The explanation of the various different types of planned gifts is not intended as legal or tax advice.  A donor's legal and tax advisor should be consulted when considering this type of gift.