Continuing the Tradition of Grandpa Harry

For my column this issue, I wanted to turn it over to a story that was shared with me by a Jewish National Fund partner (donor).

“I remember fondly the little blue box brightly marked Jewish National Fund. Nothing, however, will eclipse the fundraising ability Grandpa Harry demonstrated in support of Israel.

“Grandpa Harry has two Jewish National Fund forests in Israel, celebrating not only his love for Israel but also his success in fundraising. He was committed to a successful, vibrant Jewish homeland. He even had two audiences with David Ben-Gurion. My Grandpa Harry was not rich, but he was rich in his love for Israel.

“Now that I am able I want to carry on the tradition to support Israel passed down to me.

“Last year, I had the opportunity to sell a property I had held for an extended period, and that’s when I learned about a Charitable Remainder Trust. This is a way to give money to a charity and provide income to myself and my family. In addition to the income, I discovered that by donating the property to the trust before selling it, I would eliminate capital gains tax, receive a tax deduction, and even save on estate taxes.

“My accountant pointed out that if I don’t use the entire tax deduction in the first year, I could carry over the remaining balance for another 5 years. This lets me continue reducing my taxable income for several years. He also explained that I could use some of the tax savings and income from this trust to purchase life insurance for my wife and me to ensure my children receive income and estate tax-free proceeds equal to the property we held.

“From a tax planning and financial perspective, the Charitable Remainder Trust achieved many goals for me and my family. But the real value of this transaction is the good work the money will do once my wife and I no longer need the income and the trust terminates. My family is carrying on the tradition of philanthropy taught to me as a young child.

“Grandpa Harry would be so proud.”