President's Coiumn
by Neat F. Zaienko,-
:President,
KENNEDYS &WED TAX D
INI
KEREN KAYENIETH lEISRAEL
FROM
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FWD
17100 West
10 Mile Road
Southfield, MI
48075
Phone 557-6644
FAX: (810) 557-2412
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he financial press is full of stories and advertisements concerning the virtues and value of proper estate
planning. With top rates at 55%; the tax on estates and lifetime gifts is among the highest levied. Given
„IL this fact, it is amazing that most people don't plan for the disposition of their wealth, and therefore cheat
their heirs out of hundreds of thousands of dollars. As a society we are getting older, and as the first of the baby
boomers turned 50 this year, there are literally trillions of dollars that will be transferred from one generation to
the next over the next 20 years. The choice we have as savvy consumers is to make these transfers to the ones we
love, the worthy charities we support, or state and federal governments. If the choice is simply to allow the gov-
ernment to take it's share, then nothing needs to be done. It will be done for you. If however, the choice is to
choose where and how your accumulated wealth is to be distributed, then effective planning must take place.
The fact is that proper charitable gift planning can be a valuable tool used for proper estate planning. Besides
leaving a favorite charity a bequest from a will, various gift plans will allow you to earn income, create income
tax deductions, save on capital gains taxes, and benefit your heirs as well. Properly structured, not only will your
money have a significant impact for the charity of your choosing, but the ability to control the disposition of as-
sets will be left to you, and not governmental agencies.
One idea that has gained popularity recently has been the use of a Charitable Lead Trust. The idea is not new,
however with the recent passing of Jacqueline Kennedy Onassis, it has received a second look by those in the
process of planning their estates. This type of trust is created by the transfer of assets by the grantor whose pur-
pose is to provide a charity or charities with annual income for the lifetime of the trust. At the trust's expiration,
the assets are distributed to named beneficently help a favorite cause and not disinherit heirs. They will receive
the trust balance at the end of the trust term.
Let's look at an example.
Mr. Schwartz, in the process of planning his estate, has a desire to continue his support of the Jewish National
Fund, wants to leave as much to his children and grandchildren as possible, and, of course, save as much estate
taxes as possible. A Charitable Lead Annuity Trust might be a useful tool in this case. By creating a 10 year 6%
Charitable Lead Annuity Trust with $1,000,000, Mr. Schwartz can provide Jewish National Fund with $60,000 in
annual income or $600,000 over the lifetime of the trust, and at the end of the ten year period the trust assets
will be distributed to his children free of any income or estate taxes.
By utilizing this type of trust, and based on current assumptions, the cost to Mr. Schwartz of transferring
$1,000,000 will not be taxable.
This is but one example how proper charitable gift planning, coordinated with one's estates plan can achieve
desired goals and objectives. Through effective planning the disposition of estate assets can be directed and
controlled while minimizing the tax bite.
Don't miss these current planning opportunities. Give JNF a call or speak to your tax advisor for specific ex-
amples of how you may benefit as the Kennedy's did.
Ociober Tour To Isra,
For Young Adults
A special JNF trip to Israel is
scheduled for Oct. 20-31, 1996
for young adults ages 25-40. This
mission will be the sixth annual
trip. More than 200 people par-
ticipated in last year's mission and
a larger attendance from across
the U.S.A. is anticipated.
The trip promises to be the ad-
venture of a lifetime. Take jeep
rides in the Golan, hike in the
north and south, visit Masada,
tour Jerusalem, and more. Mem-
ories will be shared and friend-
ships will be made while
travelling with other young pro-
fessionals from across the coun-
trY.
Cost: $1,599/person from
Kennedy. Connecting domestic
flight from Detroit-$200. A min-
imum gift to JNF of $500/person
payable by May 1, 1997 is re-
quired. Extensions, European
stopovers and single rooms are
available. Payment can be made
by Visa, American Express, Mas-
tercard or check. For further in-
formation, call Ed Rosenthal at
JNF - 557-6644.
Jewish National Fund
will be honoring
GovernorJohn Engler
at their Tree of Life dinner,
on Monday, Nov. 18, 1996
at Cong. Shaarey Zedek.
Call Ed Rosenthal for further information.
Garden Donors Enrolled
4s Of Ault 6, 1996:
We acknowledge with sincere
appreciation the following Gar-
den Donors who enrolled in the
Michigan Garden Club as of Au-
gust 6, 1996:
BOBBIE AND STEPHEN
FELDMAN; MEL KEPES; FAMI-
LY AND FRIENDS OF MEYER
ARBIT; DOREEN AND DAVID
OLD- IE DATE!!!
HERMELIN, MARTIN R GOLD-
MAN; THE 43 GRADUATES
FROM HILLEL DAY SCHOOL
OF METROPOLITAN DE-
TROIT; WILLIAM DAVIDSON;
DAVID JACOBS; THE STU-
DENTS OF CONGREGATION
BEIT KODESH SUNDAY
SCHOOL.
t;$ en Book
Sufreribers OlAueust 6, 1996:
Golden Book subscribers help
the JNF continue land reclama-
tion in Israel. We salute the fol-
lowing contributors for Golden
Books as of August 6, 1996:
RISA, AUGREY AND CARY
MILLER; DOREEN AND DA-
VIDE HERMELIN; 'THE MAHJ
BUNCH", NORMA AND AL,
ROSE AND GEORGE, MIL-
DRED AND JERRY, ADELLE
AND LEON, LIL AND TED;
MIRIAM & JACK SHENKMAN;
PAULINE ROSE.