Generations E DUCATI NG
at the University of Illinois Springfield
GIFT PLANNING IDEAS FROM THE UNIVERSITY OF ILLINOIS FOUNDATION
FALL 2020 | ISSUE 95
Performing Arts Patron Gives Despite Pandemic Marc and Sherri Schnetz, of Springfield, Illinois, loved to take in a good show. Sherri favored Toby Keith, while Marc enjoyed Martina McBride. The couple often attended performances at the Performing Arts Center at the University of Illinois Springfield as well as other venues. Marc and Sherri Schnetz
“We would make a weekend out of it,” says Marc, who is 62 and retired. “We really did enjoy our time together on those little journeys.” Their love of performance inspired Marc to make a bequest through his estate to the University of Illinois Foundation for the benefit of FRIENDS of the Performing Arts Center at UIS. “I just felt like it’s the right thing to do,” he says. Sherri died in 2015, but Mark’s gift is a way of celebrating what they enjoyed together while making a difference for the arts. Marc says he would love to have a Springfield venue comparable to places like The Fabulous Fox Theatre in St. Louis or the Rosemont Theatre in suburban Chicago. After learning how his support makes such a difference to the Center, he now intends to make more gifts to benefit the performing arts. According to Bryan Rives, director of the Performing Arts Services and UIS Performing Arts Center, “bequests can help a major need go from a wish to a reality.” Rives says the main needs of the PAC tend to be either facilities or program related for things like repairs, maintenance, and lighting and sound upgrades. Gifts are critical to help support the cost of bringing shows to Central Illinois when ticket sales don’t cover expenses. With the COVID-19 pandemic looming, Marc realizes shows will not return soon. “It gives us this opportunity during the downtime to get it ready and prepared for when things do fully open. We can take advantage of that; turn a bad thing into a good thing,” he says.
INSIDE • Being Wise in Uncertain Times • Estate Gifts—Safe and Easy • Single and/or No Children? Here’s An Idea … • Need An Attorney? • Honoring Someone—Tribute Gifts • Increase Your Income with a Gift Annuity • Pay Zero Income Tax In 2020— Here’s How! • Student Spotlight
Marc’s estate commitment will provide future support and keep his and Sherri’s love for the performing arts alive in perpetuity at UIS.
BEING A WISE DONOR IN UNCERTAIN TIMES Being wise in making financial decisions is always important. However, even more thought and wisdom are required when considering charitable giving during times such as these. Making a “wise gift” could be defined as a gift that includes maximum benefits to the charity and also maximum benefits to you, the donor. In calling certain gifts “unwise,” we do not intend to diminish the good they accomplish. We simply mean that there is a better way to structure them. Wise donors figure out the best gifts for their particular situations by answering a number of questions, including:
hat asset should I give? W How much should I give? When should I give? Which giving method should I use? What specific purpose do I want to support?
For help in answering these questions, return the response card to receive a complimentary copy of our guide, How to Be a Wise Donor.
ESTATE GIFTS–SAFE AND EASY Except for the wealthiest among us, most people are simply not in a position to make their “ultimate gift” while living. Instead, most donors make lifetime gifts that don’t jeopardize their standard of living and then create a legacy with their ultimate gift made at death. This preserves the lifestyle they worked so hard to achieve, but also allows them to provide significant support to charitable organizations they believe strongly in that have impacted their lives. If UIS has impacted your life, please join us in the effort to maintain access and affordability and extend the excellence of academic programs for future generations seeking the same success in life that you’ve achieved. It’s as simple as using the following language in your will or trust or on IRA, insurance, or payable-on-death (POD) beneficiary forms: “I leave (e.g., % of estate, $ amount, residue) to the University of Illinois Foundation, an Illinois nonprofit corporation (37-6006007), to be used for (*fill in from options below) at the University of Illinois Springfield.” *financial need-based scholarships *academic merit-based scholarships *graduate fellowships *faculty research support *general support of educational programs and activities
NOTE: If you would like to designate your estate gift to a particular program or academic unit at UIS, please contact us to obtain further information to ensure that your wishes are carried out. To assist in your estate planning, request our guide Planning Your Will for All It’s Worth by returning the response card or downloading it at www.uis.giftplans.org/guides. 2
Single and/or No Children? Here’s An Idea … When an individual is single, the estate-planning issues they face are somewhat unique. For singles who have no children, the issues can be far more complex and challenging. In most cases, the goal is often to help loved ones without just leaving them a large chunk of money. In that case, they, not you, decide who ultimately benefits from your life’s work. Attractive charitable option: You could establish a charitable remainder trust (CRT) to benefit a sibling, niece or nephew, or other loved one with reliable income; AND you can also designate a charitable beneficiary(ies) to receive the assets after the income recipients are gone. If you establish a CRT during your lifetime, you can lower your current income taxes due to the charitable deduction you receive, and you can also avoid capital-gain tax if you use appreciated property, such as stocks or real estate. You can even set it up so you receive the income for your lifetime, first, and then the others if they survive you.
NEED AN ATTORNEY? Below are two resources many people use to find an attorney. In addition, like the Illinois State Bar, the bar association in your state of residency may have a similar resource. National database of lawyers: www.lawyers.com Illinois State Bar Association: www.illinoislawyerfinder.com NOTE: Be sure to conduct your own due diligence to ensure the services offered will meet your personal estate and tax planning needs.
The other option is to establish the CRT with language in your will or trust. In that case, there is no incometax savings for you, but your loved ones will still receive the income beginning at your death, plus your estate receives an estate-tax deduction and you get to designate the ultimate charitable beneficiary. These planning strategies are very popular, and we would be happy to discuss how they might apply to your specific situation and objectives.
If providing income to someone after you’re gone is an attractive option, contact us for further information. It’s much simpler than you might think!
HONORING SOMEONE—TRIBUTE GIFTS Tribute gifts have become very popular in recent years as donors seek ways to honor their loved ones. You can endow a named fund with UIS that stands in permanent tribute to a parent, spouse, other family member, or perhaps a beloved professor. This can be achieved with a gift you make now or with some form of estate gift mentioned in this newsletter. Please contact us if you’d like to honor someone with a tribute gift. The information contained herein is offered for general informational and educational purposes. The figures cited in the examples and illustrations are accurate at the time of writing and are based on federal law as well as IRS discount rates that change monthly. State law may affect the results illustrated. You should seek the advice of an attorney for applicability to your own situation. Copyright © by Pentera, Inc. All rights reserved.
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Increase Your Income with a Gift Annuity Lock in guaranteed lifetime income with a gift annuity AND enjoy these additional benefits! • Help educate future generations • Avoidance of capital-gain tax • Immediate income-tax savings • Tax-free income potential •C onvert risky stocks to guaranteed income
ONE LIFE Age Rate 65
5.1%
TWO LIVES Ages Rate 65–65
4.5%
70 NOT ENLARGE, 5.6%REDUCE OR 70–70 5.0% IMPORTANT: DO MOVE the FIM and POSTNET barcodes. The Special care must actual size AND placed 75 be taken to ensure 6.2% FIM and POSTNET 75–75 barcode are 5.5% to meet both USPS and automation compatibility standards. 80 regulations7.3% 80–80 6.2% 85
8.3%
85–85
7.3%
Go to www.uif.giftplans.org to check your annuity rate. NO POSTAGE NECESSARY IF MAILED IN THE UNITED STATES
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HARKER HALL MC-386 UNIVERSITY OF ILLINOIS FOUNDATION 1305 W GREEN ST URBANA IL 61801-9934
PAY ZERO INCOME TAX IN 2020—HERE’S HOW! Artwork for User Defined (3.75" x 5") Produced by DAZzle Designer, Version 9.0.0
Layout: sampleAct BRM Envpassed with IMB.lyt (c) 1993-2009, www.Endicia.com The CARES was in March to help AmericansEndicia, deal with the April 29, 2011 U.S. Postal Service, Serial # coronavirus. One provision allows you to deduct gifts made with cash in 2020 up to 100% of your adjusted gross income (AGI). This is particularly attractive to donors who want to accelerate completion of a pledge. Example: Jim and Martha made a pledge and still have a $200,000 balance. They would love to help more students sooner, so they take $200,000 out of the bank that’s only earning 0.25% and complete their pledge this year. Their AGI is $220,000, so they can deduct the full amount and reduce their income tax to almost zero.
Donors over the age of 59½ with retirement plans are also taking advantage of this opportunity. Example: Judy is 80 and has her own retirement plans and one she inherited when her husband passed. She doesn’t need any of them to live on and dreads the high taxes on the RMDs every year. To eliminate both, she withdrawals the entire amount and donates it to endow a chair in honor of her late husband. Her AGI is increased by the amount of the withdrawals; but since she can deduct 100% of AGI, there is zero tax due.
STUDENT SPOTLIGHT “Because of the scholarships I received, I was able to graduate in May debt-free with a degree in chemistry and a minor in music. I’m now well-positioned to pursue a Ph.D., which will enable me to ‘reach for the stars’ and someday combine my knowledge of chemistry, public health, and engineering to be the best professional I can possibly be.” —Natalie Kerr, Class of 2020 Recipient of the Camerata Music Scholarship and Capitol Scholars Honors Program Scholarship
PLEASE SEPARATE THE CARD BELOW AND RETURN!
Please send me a complimentary copy of your new guide(s): n How to Be a Wise Donor n Planning Your Will for All It’s Worth n Please send me information about making a gift that would also provide income for me and/or others. n P lease send me Charitable Tax Planning with Retirement Funds, which includes how to make a TAX-FREE gift from my IRA. n I want to inform you that I have already included UIS in my estate plans and would like to document my intentions. n Please contact me to discuss my giving options.
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You can also download these materials at www.uis.giftplans.org/guides PLEASE FOLD ON THIS SCORE AND TAPE CLOSED BEFORE MAILING.
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Finally, we are here for you and welcome any questions you may have regarding a gift fund you established, an active pledge, or any other gift or gift-planning issue that may be on your mind.
One thing that has not changed is the power of higher education to change lives. We have heard from many of you and appreciate your recognition of this fact. As we continue to embrace the challenges we face, please know that your continued involvement and support is critical to our success.
We hope you and your loved ones are remaining safe and healthy through these difficult times. The level of uncertainty brought about by the coronavirus is unprecedented and is affecting nearly everything we do at UIS. One thing we have learned is that “unprecedented” does not mean “impossible.” Please visit our official COVID-19 website for a full rundown of the actions we are taking as we lead in the fight against the pandemic: www.uillinois.edu/coronavirus
TURNING “UNCERTAIN” INTO “EXTRAORDINARY” Embracing the Challenges We Face
Office of Gift Planning and Trust Services University of Illinois Foundation 1305 W. Green St., Rm. 214 Urbana, IL 61801-2962
www.uif.giftplans.org
Justin Seno Director of Gift Planning University of Illinois Foundation (217) 244-8273 jtseno@uif.uillinois.edu
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