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Give It Twice Trust

Give It Twice Trust
While visiting the Wills Planner on her favorite charity's website, Osna, a surviving spouse, came across the idea of a Give It Twice Trust. She contacted the Jewish Federation in her community for more information, and a gift planner explained the concept as a way to first give income to children through a trust and then transfer the trust balance to charity in the future.

Osna: Paul and I talked about this before he passed away. We both agreed that we wanted to treat each of our four children equally and also provide a benefit to our favorite charity.

The gift planner told Osna that with her estate of $800,000 she would have the ability to do something significant for both her family and favorite charity. Osna was concerned because while her three older children are financially responsible, her youngest, Josh, "spends money like water." Osna was afraid that if Josh were to receive cash in a lump sum he would spend it right away.

The gift planner explained that the "Give It Twice" plan could be very helpful. Osna could transfer $400,000 from her IRA to the trust when she passes away. Her children would each receive one-fourth of the income over 20 years. That would give Josh a chance to learn to save and invest. In addition, by using her IRA, Osna could save on income tax because the special trust is tax-exempt.

Osna: I established a Give It Twice Trust and was thrilled with the plan. The prospect of helping my four children and the Federation made me happy, and I knew that it was the right thing to do.

*Please note: The name and image above are representative of a typical donor and may or may not be an actual donor to The Jewish Federations of North America, a Jewish Federation or a Jewish Community Foundation.

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Any tax consequences described on this page are based on U.S. federal tax law. Charitable deductions from state and local taxes or from Canadian and provincial taxes may not be available to the same extent as from U.S. federal taxes. The Jewish Federations of North America (JFNA) does not provide legal advice. Donors are encouraged to seek independent tax and legal counsel. You may read JFNA's charitable solicitation disclosure statement here and important information about endowment gifts and bequests to JFNA here.