Leaving a legacy to Yeshiva University, whether an outright gift or bequest, ensures that future generations of students have the opportunities to enrich their lives and Jewish heritage. With a carefully considered gift strategy and estate planning, you may earn an income while putting money to work for YU; reduce taxes now or for your heirs; and create a lasting philanthropic contribution that supports the mission and educational excellence of Yeshiva University.
See the categories of planned giving below for different options that may interest you.
For more information, please contact Seth Moskowitz, Vice President for Institutional Advancement at email@example.com.
Gifts of pensions or IRAs are perhaps the most powerful charitable tax savings tools available. Retirement plans and IRAs may be subject to joint income and estate taxes of up to 80 percent, after your life and the life of your spouse. If your professional adviser believes this is your situation, an appealing alternative to paying this tax from your estate may be naming Yeshiva University as beneficiary of your pension. In this way, 100 percent of your pension goes to help Yeshiva university, rather than up to 80 percent going to the IRS and only 20 percent going to your children. This option is particularly attractive if you have other resources to leave your children.
If you wish to conserve your pension or IRA for your children, there are ways to reduce income and estate taxes on these assets, while increasing the monies available both to your family and Yeshiva University.
For example, consider naming us as beneficiary of your pension, while using your pension income to purchase relatively low cost insurance for your children. If done with advice from your professional adviser, this could result in leaving 100 percent of your pension to Yeshiva University, and an amount equal to 100 percent of your pension to your children; instead of leaving 20 percent to children and paying 80 percent to the IRS in estate taxes.
Remember that by giving low tax assets to children, and high tax assets to charity, you help them both.
Consider the advantages of increasing your income and decreasing your taxes, while also helping Yeshiva University:
- Increase lifetime annual cash to you or your beneficiaries,
- Obtain a significant charitable income tax deduction,
- Leave a gift to Yeshiva University after the lives of you or your beneficiaries,
- Avoid paying capital gains tax, and
- Remove assets from your taxable estate.
The benefits to you of a Life Income Trust can be quite impressive. For example, assume that a 65-year-old contributes $100,000 of stock that he purchased for only $10,000 to a Yeshiva University Life Income Trust. Also assume that he requested that he receive an annuity each year from the trust of 5 percent, or $5,000. He would obtain a charitable income tax deduction of up to approximately $50,000. He would also increase his annual income from zero (since his stock was not producing any dividends) to $5,000. Over a projected lifetime of 20 years, he would receive $100,000 extra income. Best of all, after his lifetime, a wonderful endowment in his name would be given to Yeshiva University.
Everyone can be a philanthropist with the gift of life insurance. A gift of life insurance is the most inexpensive way to stretch your philanthropic dollar. If you or your spouse is in reasonable good health, modest annual premium payments will provide a gift in excess of 10, 20 or even 100 times your original contribution.
Everyone can be a great philanthropist with insurance, at almost any age. At age 70, you and your spouse may be able to establish a $100,000 scholarship at an annual cost of as low as $2,400. Your charitable income tax deduction could reduce this annual cost to $1,440. If you are younger, the benefits are even more dramatic.
Here's how it works: Every year you make a gift to Yeshiva University and recommend that the gift be applied to purchase insurance on your life. Your gift is completely tax deductible, and none of the insurance proceeds will be taxable against your estate. If you are not eligible for insurance, you can sponsor a child or relative as insured.
Or you may find that you own insurance that you no longer need—for example, if your children have become financially independent. A gift of a policy you no longer need would entitle you to an income tax deduction equal to your cost in the policy and would result in a wonderful gift. Any future premium payments you make would be tax deductible.
You might be entitled to a charitable income tax deduction if you make an outright gift of your residence. Learn more.