Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
2Activity
0 of .
Results for:
No results containing your search query
P. 1
HNU Focus on the Future FALL 2010

HNU Focus on the Future FALL 2010

Ratings: (0)|Views: 281 |Likes:

More info:

Published by: Holy Names University on Nov 03, 2010
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

11/03/2010

pdf

text

original

 
TAX AND ESTATE PLANNING FOR HOLY NAMES UNIVERSITY ALUMNI AND FRIENDS.VOLUME 1 ISSUE 2
on the Future
 
eraldine (Jerry) came to College of the Holy Namesas a freshman at the recommendation of Sr. Joan,OP, one of her teachers at St. Vincent’s High Schoolin Vallejo. Jerry and her mother visited the College and sheremembers meeting Sr. M. Rose Emmanuella Brennan that day.
continued on page 4
Ecofeminism, or ecological feminism, is a term coined in 1974 by Françoised’Eaubonne. It is a phi-losophy and movementborn from the union of feminist and ecological thinking. Geraldine (Jerry)Hobgood, a loyal friend and alumna of Holy NamesUniversity, exemplied eco-feminism before Françoised’Eaubonne thought of theword! Her stewardship of our earth has grown and evolved over the years and her mantra has become“sustainability”–the capac-ity to endure. In additionto her work for environ-mental sustainability, Jerry’screation of a CharitibleRemainder Trust–a planned  gift with Holy Names as thebeneciary–helps to assurethat her alma mater will endure.
She always wanted to go to college andactually had her heart set on attending theUniversity of California at Berkeley (whereshe was, indeed, accepted). Her wise motherinsisted that she attend Holy Names for herrst year only. That, of course, was all it tookfor Jerry to get “hooked.” Looking back, sheacknowledges that she was able to attendHoly Names because of the generous nan-cial aid that the College afforded her and forthis she is most grateful.Jerry received her Bachelor’s Degree in Eco-nomics and Psychology. Because she loved towrite, Jerry thought she wanted to become ajournalist for a newspaper. Sr. M. Claire Mad-eleine Carlin advised her that taking literature,sociology, and humanities would give her awellrounded education and serve her well inthis eld. She remembers her beloved institu-tion for its academic excellence, for developinga social conscience among its graduates, andfor deepening each person’s awareness of eco-nomic and moral responsibilities. Jerry recog-nizes that she could not have accomplished allthat she has throughout her life without thisvaluable educational experience.After graduating, Jerry spent six years inAustria and Italy serving in the special ser-vices. Returning to the U.S., she worked asa counselor for several years in Los Angelesfor Catholic Social Services. In the late 1950sJerry moved to Aspen, Colorado and openedthe “Opera House Espresso” with a tool kitcontaining a hammer, a saw, and a spatula.This was her rst natural interior...made of tree stumps, animal hides and the ends of cable telephone spools.After a wide variety of ventures and adven-tures, she then relocated to Grand Junctionand joined VISTA where she was attachedto legal services as a community organizerserving the poor, elderly and minority popu-lation. Ever alert to social injustices, Jerry(as a VISTA volunteer) was instrumental instopping a highway, which was planned toplow through the poorest section of Rie,
 
Are you interested
in a making a contribution tocharity, but are unsure whether you will have adequatefuture income? Are you postponing the sale of an appreciated assetto avoid a substantialcapital gains tax? Doyou want to make asubstantial gift to youralma mater, but feelthat this goal may beout of your reach? If any of these scenariossound familiar, you maybe interested in creat-ing a Charitable Re-mainder Trust (“CRT”).
What is a CRT?
A Charitable Remainder Trust (CRT) is an irrevocabletrust, which allows you to transfer assets to a trust inexchange for an income interest while designating thecharity of your choice as the ultimate beneciary of thetrust funds. The CRT can provide income to you and yourspouse that can last the rest of your lives, or, if you choose,a specic number of years.
How does a CRT work?
Your attorney drafts the document establishing the CRT,which identies the donor, the trustee, the income bene-ciary, and the charitable remainder beneciary. You, as thedonor, can designate yourself and/or your spouse as theincome beneciaries. Another option is to name an incomebeneciary other than yourself and/or your spouse.Once the CRT is established, you then gift cash or appre-ciated assets to the CRT. After the assets are contributedto the CRT, your accountant then determines the valueof the immediate income tax deduction that you may beentitled to as a result of making a gift to the CRT.The trustee invests the CRT assets for the term of thetrust. The trustee may sell an appreciated asset insidethe CRT without incurring any capital gain. An incomestream is then paid to the designated income beneciaryfrom the trust assets. Once the trust term ends, the re-
F
cus
 
on
Charitable Remainder Trusts
 by Jesse Bassett
maining assets are distributed under the guidelines to thecharitable remainder beneciary you previously designatedin the document establishing the CRT.
Income Stream 
Annuity or Unitrust
Two different payout options are available for the incomebeneciary of the CRT—an “annuity” payment and a“unitrust” payment. An annuity payment requires thetrustee to pay a xed amount each year for as long as thetrust term lasts—e.g., $50,000 per year. Under the annu-ity payment, the income payments remain unchanged andare not dependent upon the value of the CRT’s assets.Under the “unitrust” payment, the trustee is required topay a xed percentage of the trust assets—e.g., 5% of thevalue of the trust. A change in the value of the CRT’sassets will cause a change in the amount of income dis-tributed to the income beneciary. The unitrust paymentdiffers from the annuity payment in that the unitrustpayments may be variable, as the CRT’s assets must berevalued annually.
Tax Benefts
CRTs are exempt from income tax and also allow thetax-free sale of appreciated assets inside the trust. Muchof the power of the CRT lies in its tax-exempt status. Do-nors can fund CRTs with a variety of appreciated assetsincluding stocks, bonds, mutual funds, real estate, part-nership or LLC interests, closely held corporations, art,and other tangible property. This preferential tax statusallows the donor to transfer these types of assets—thathave appreciated in value well beyond their original costand turn them into an income stream without incurringany capital gain.CRTs are a exible answer to many charitable and tax-related problems and can accomplish multiple goals. TheCRT is unmatched in allowing the liquidation of ap-preciated assets without incurring capital gains tax andincreasing cash ow by providing an income stream tothe donor. Utilizing a CRT allows a donor to give backto charity and increase liquidity and maintain an incomestream—really the best of all worlds.
2
 
The gift
of an education ispriceless! Yet the cost of an educa-tion can be very expensive. Alumniand current students, alike, haveexpressed their gratitude for schol-arships they received that enabledthem to receive a quality educa-tion, whether at the Lake Merrittcampus or the Mountain Boulevardcampus.
Holy Names University has beenblessed to receive a number of endowed scholarships over the yearsthat were obtained because an alumor friend designated funds in theirestate plans for scholarships. Weare pleased to highlight in this is-sue of 
Focus on the Future
two suchgifts that we have received frombequests.We received word in Fall 2008 thatformer Regent, Robert Summers, hadremembered Holy Names Universityvery generously in his will. The Rob-ert W. Summers and Beverly Sum-mers Scholarship will target studentswho are interested in pursuing careersin science/medicine and journalism.During a memorial Mass that wascelebrated in McLean Chapel onFebruary 26, 2009, the sixth-month
F
cus
 
on
anniversary of Bob’s death, Sister IreneWoodward, who had been Presidentwhen Bob was most active with HolyNames, shared her reections of hislife. She spoke about how Bob was in-troduced to then-Holy Names College:“During this time, we also started anannual Business Symposium, bringingthe business and civic leaders togetheron our campus for a full day, to dreamand plan together for a better Oaklandand East Bay. We did not know any-one from Chevron, which had recentlymoved its corporate headquarters outof San Francisco to San Ramon, andwhich was eager to establish good rela-tions with this new part of the world.The gift from Chevron to us, one thathas endured to this day, was the as-signing of Bob Summers, their Man-ager of Public Affairs for the East Bay,to head up their relationship to HolyNames. Through his position, he wasable to get many gifts for Holy Namesfrom Chevron through the years, butthe greatest gift was Bob himself.”Bob was very generous to Holy Names.Despite his frequent presence, Bob wasnever imposing or sought the lime-light. Sr. Irene concluded this way:“So, when Bob died last summer, wehad grateful memories of a truly gentleman, and we will always hold themfondly and sacredly. But the story isnot nished; Bob did one nal thingin the same way he had done every-thing—quietly, modestly, withoutbringing attention to himself, but withdeep loyalty and devotion. I mightsay that he fullled every universitypresident’s dream: to learn one daythat someone has left the institution avery signicant amount of money forstudent scholarships. We had no idea
Scholarships from Bequests
that he included us in his will, muchless, for a very large gift.”
In January
of 2009 we receiveda check from the estate of PatriciaWard Engstrom. Pat was not in ourdatabase so it took a bit of sleuthingto determine her relationship with theUniversity andwe discoveredthat she was amember of theClass of 1950!She graduatedwith a degreein history andwas a memberof the historyhonor society,Alpha Phi Alpha. She also participatedin the International Relations Club,Masquers (the drama club), StudentTeachers Association, Tau Delta Gam-ma (scholastic honor society), and themath club. During her senior year, Patwas named as the Business Manager of Excalibur, the yearbook, and she wasrecognized by the staff for “keepingus out of the red.” After graduation,Pat moved to Fresno and was married.Although she had not maintained con-tact with Holy Names, Pat’s educationmeant a great deal to her, obviously, asHNU was one of two major recipientsof her estate.
Thank You 
Bob and Pat, for remembering our students so thoughtfully—your partnership with us will enable our students to achieve their dreams of receiving a college education.
3
Robert Summers with sister, Beverly Summers

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->