Give a Legacy or an Endowment
Gift Planning
You can support Herzog Medical Center while furthering your own financial objectives:
- Enjoy an immediate income tax deduction for a ‘future’ gift.
- Bypass capital gains taxes.
- Establish a memorial for a loved one.
- Leave your children a greater inheritance.
Charitable Remainder Trusts
A Charitable Remainder Trust (CRT) is a way to make a significant deferred gift while retaining lifetime benefits. A CRT can be established to provide an income for you, your spouse, your children or other beneficiaries before passing to Herzog Hospital. At the same time, you will create a charitable income tax deduction which can be used to offset income and, if necessary, carried forward for an additional five years. The assets contributed to a charitable remainder trust would be removed from your estate thus avoiding the Federal Estate Tax on those assets, which can be as much as 55% of their value. There are two types of charitable remainder trusts.
The Charitable Remainder Annuity Trust provides the donor and/or beneficiaries with a fixed lifetime income. The payment could continue for the lifetime of the beneficiaries or for up to 20 years. The Annuity Trust is best for donors who seek a regular fixed income and prefer to have the satisfaction of knowing the amount of the payment in advance. The Charitable Remainder Unitrust provides the donor and/or beneficiaries with an annual income based on a fixed payment percentage (not less than 5%) of the value of the trust’s assets as determined annually. Again, the payment can continue for the lifetime of the beneficiaries or for up to 20 years. As the trust’s assets increase in value, the donor receives a larger payment, providing a hedge against inflation. Additional contributions are permitted to a Unitrust.
Charitable Gift Annuities
A Charitable Gift Annuity is usually established with a gift of $10,000 or more. The initial gift can consist of cash or securities. Capital gains tax is avoided on the transfer of appreciated securities to purchase a Charitable gift Annuity. The donor also receives a current income tax deduction and removes the assets from his/her estate for Federal Estate Tax purposes. There are two types of Charitable Gift Annuities. Immediate Charitable Gift Annuity is a contract between the donor and Herzog Medical Center that pays a fixed income for life to one or more beneficiaries. The Deferred Charitable Gift Annuity is a contract between the donor and Herzog Medical Center that provides for income payments that begin at some time in the future (at least one year after the date of the gift).
Remainder Interest in Real Estate
An individual can deed his/her real estate to Herzog Medical Center currently, but continue to have full and exclusive use of the property for the remainder of his/her lifetime. The donor continues to pay for maintenance, real estate taxes and insurance on the property just as they always have. The donor receives a charitable income tax deduction in the year that the deed is recorded.
Gifts Using Life Insurance
The gift of a paid-up life insurance policy to Herzog Medical Center will usually create a charitable income tax deduction equal to the replacement value of the policy or its cost basis, whichever is less. Therefore, term insurance could not be used as a gift to create an income tax deduction. Herzog Medical Center could also be named as the beneficiary of existing life insurance (permanent or term), thereby avoiding possible estate tax inclusion of the policy proceeds.
Wills and Testamentary Trusts
It is possible to name Herzog Medical Center as a beneficiary in your Will or of a Trust created by your Will. Testamentary bequests are among the most popular planned gifts. You may bequeath a specific item or a percentage of your estate to Herzog Medical Center. It can be an outright bequest or a contingent one; that is, going to Herzog Medical Center only if another beneficiary predeceases you. Further, if you wish, the bequest may be restricted for a particular purpose.
Retirement Plan Beneficiary Designation
Herzog Medical Center can be named as a beneficiary of a IRA, 401(k) or other qualified retirement plan. The assets in these plans are taxed for both income tax and estate tax purposes and can even be subject to an additional excise tax at the account owner’s death. All of these taxes, which can amount to 75% of the account’s value, can be avoided on the portion of the account for which Herzog Medical Center has been designated as the beneficiary.
Family Foundations and Supporting Organizations
A donor can establish their own family foundation and make Herzog Medical Center one of its intended charities. The family foundation is an independent entity which has tax exempt status subject to certain IRS rules. A family foundation can continue in perpetuity. A supporting organization is similar to a family foundation but it derives its tax exempt status from the organization that it is designated to support. Herzog Medical Center can act as the underlying charity for a supporting organization. Contributions to a family foundation and a supporting organization are governed by slightly different rules but contributions to either usually create a current income tax deduction. The assets contributed are also removed from the donor’s estate for Federal Estate purposes.
Herzog Hospital is authorized to issue Receipts valid for income
tax purposes in Israel, USA, Canada, Great Britain, France, Germany and Holland. We accept Israel Bonds and shares of stock which can be acknowledged for tax purposes.