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Property Turns Into Income

Property Turns Into Income
Rachel lived in the family home where she and her spouse had raised their three children. After her spouse passed away, Rachel found it increasingly difficult to care for her home.

Rachel's grandson, a new teacher in the nearby Jewish day school, came often to visit and help Rachel with chores around the house. On one such visit, he helped her "surf" on the Internet. Rachel enjoyed reading the weekly finance updates and donor stories on our website. On one such visit, she learned that she could make a gift of her home to her local Jewish Federation and receive income for life.

Rachel: I called the gift planner and asked her how a charitable remainder trust works. She said that when the time came for me to move out of my home, I could give it to my favorite charity and set up a special kind of trust. The trust would provide me with income for the rest of my life, and I would receive a tax deduction for my gift.

Rachel thought that she might want to move to a condominium with less upkeep. Her financial advisor reviewed the plan and said that the income Rachel received from the charitable remainder trust would be enough to cover her living expenses.

Rachel: After checking some real estate websites with my grandson, I found a condominium nearby that was perfect for me. I called my lawyer and said that I was ready to move out of my home and set up a charitable trust.

Rachel was thrilled that she could turn her property into income to meet her future needs and receive a charitable deduction for her gift. She named her local Jewish Federation as the charitable beneficiary of the trust with directions for the assets remaining after her lifetime to be added to the Federation's Jewish Day School Endowment Fund. Rachel's grandson beamed when she told him about her gift. It communicated volumes about her pride in him and his chosen profession, and it will be a lasting reminder of the importance she places on Jewish education.

*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. Since your unitrust benefits may be different, you may want to click here to view a color example of your benefits.

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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.