Jewish Senior Living magazine 2011/2012
Meaningful gifts become extraordinary when they accomplish more than you ever thought possible. They meet your goals and advance the mission of the Jewish Home. To learn more about membership in the Carob Tree Circle or how you may preserve your legacy through a planned gift to benefit the Jewish Home, please contact Daniel Hoebeke, J.D., senior development & gift planning officer, at 415.406.1434 or via e-mail to dhoebeke@jhsf.org.
Find up-to-date information about planned giving opportunities and limited-time tax options at www.jhslf.org/legacy.
The Carob Tree Circle draws its name from a Talmudic tale.
Honi the circle maker came across an elderly man planting a carob tree. “Why are you planting this tree?” he asked.
“You will not live long enough to enjoy it.”
The man replied, “I’m doing it for my children, and their children, so that they will enjoy the fruit of the carob tree.”
Back in 2004, the Jewish Home was one of the beneficiaries of Samuel Rodetsky’s estate. Years later it was discovered that his generosity included a parcel of real estate in the holy land.
When Mr. Rodetsky died in 2000, he generously included the Jewish Home as one of the charitable beneficiaries of his estate. Upon the estate’s distribution in 2004, the Home was pleased to receive its portion. Several years later, however, attorneys discovered a new part of the bequest – an 894-square-meter parcel of land in the northern region of Israel, located in the village of Migdal. The area is known for its panoramic view of Lake Kinneret, or the Sea of Galilee.
According to the attorneys handling Mr. Rodetsky’s estate, the land was purchased in 1920, but there is no evidence he actively managed it or even visited the site. “Apparently Mr. Rodetsky forgot about his ownership, as he didn’t transfer title to the parcel into his trust,” they explained.
The area surrounding Migdal was first given to the tribe of Naphtali and is the site of one of the oldest discovered synagogues in Northern Israel. Ancient Jewish texts suggest that this area played a pivotal role in the Great Revolt, when Jews attempted to free themselves from Roman rule. In the early 20th century, the area was purchased by Russian Zionists who farmed on the property. Later it was sold to private investors, one of whom may have been Mr. Rodetsky.
The sale of the land has now been completed and a portion of the proceeds given to the Home. This, then, is Mr. Rodetsky’s legacy: providing care and services for seniors living at the Jewish Home.
Although you can leave real estate to the Jewish Home in your will, this gift process may also begin now – with the advantage of offering you welcome tax benefits.
Known as a gift with retained life estate, a personal residence or vacation property may be given to the Jewish Home with the understanding that we will receive it upon your passing. This is how it works:
You deed real estate to the Jewish Home with the restriction that you (and others you designate) have the right to live there for the rest of your life or lives. As long as you continue to live on or use the property, your control remains the same. You continue to have the exclusive right to possession, you continue to pay the taxes, insurance and utilities, and you may redecorate or make improvements to the property if you choose.
Your immediate tax benefit is a current charitable deduction for the anticipated remaining value of the property after your use of it has concluded.
Perhaps more importantly for your future planning purposes, when you pass away, the property goes directly to the Jewish Home without the interference of probate and without any federal estate taxes.
When it came time for him to take advantage of opportunities, he succeeded in forming a small but profitable jewelry business and realized his dream of owning a home. This in turn provided a haven for his mother, the person he loved most, who lived out her life in the home he had purchased.
Guenther spoke often about his immigrant experience, explaining the way in which it had shaped his life: the satisfaction he got from being self-sufficient and how important it was to him to have a home of his own. At the same time, he understood that not everyone would be able to build a nest-egg, so when he prepared his estate plan, he made certain that what mattered to him, opportunity and safety, would be available to those who could not achieve them independently. He willed half his estate to the Jewish Home, thus ensuring that many people who are less fortunate will have a safe place to call home.
The power of wills and trusts is that they afford us the opportunity to plan in sequence.
Some obligations may survive us, such as providing general financial support for our children or securing educational opportunities for our grandchildren. A properly drafted estate plan ensures that these needs will be met. You may then find, as Guenther Zimmerman did, that there are funds remaining. This is when you are able to do more than you ever thought possible; you can reach your philanthropic goals.
Please consider a gift to the Jewish Home, and to our elders, when you plan your estate.
You want to make a significant charitable gift now but are concerned about the loss of regular investment earnings.
Consider a charitable gift annuity. It provides you with an annual annuity fixed for life, and you give a gift to the Home, completed upon your passing. A gift annuity also offers a substantial immediate tax benefit.
The annuity rate you receive annually is set for life at the time you take out the annuity. The table below gives some rate examples.
| Single-life rates | Two-life rates | ||
| Age | Rate | Ages | Rate |
| 60 | 4.8% | 60/60 | 4.3% |
| 65 | 5.3% | 65/65 | 4.7% |
| 70 | 5.8% | 70/70 | 5.2% |
| 75 | 6.5% | 75/75 | 5.7% |
| 80 | 7.5% | 80/80 | 6.3% |
| 85 | 8.4% | 85/85 | 7.4% |
| 90+ | 9.8% | 90/90 | 8.8% |
The rates are higher the older you are because they are based on government life-expectancy tables. The reason they are so high is that annually you receive back a portion of what you have contributed (the return of principal). And because you are getting back part of what you gave, the amount returned to you is tax-free.
In addition, charitable gift annuities give you an immediate income tax deduction that is typically between 25 percent and 45 percent of your initial contribution.
If you would like information about including a gift of real estate in your will or taking out a charitable gift annuity, please contact Daniel Hoebeke, J.D., senior development & gift planning officer, at 415.406.1434 or dhoebeke@jhsf.org.
