BROOKINGS PARTNERS TOGETHER, WE SHAPE THE FUTURE RECOGNIZING THE IMPORTANCE OF PLANNED GIFTS. Charitable Tax-Free IRA Gifts. Extended Permanently

Transcription

1 BROOKINGS PARTNERS RECOGNIZING THE IMPORTANCE OF PLANNED GIFTS SUMMER 2016 TOGETHER, WE SHAPE THE FUTURE Charitable Tax-Free IRA Gifts Extended Permanently

2 Building a Strong Foundation for Future Generations My legal education provided a strong foundation for success and gave me the confidence to take on new challenges, says J. Warren Clinton, JD 70, reflecting on a career that includes roles as diverse as attorney and lodge proprietor, businessman, real estate developer, professor, and consultant. My law degree has been a tremendous asset throughout my career. Raised in a small town in southwestern Iowa, Warren earned a bachelor s degree in business administration and economics from Principia College. Subsequently he moved to California, where he worked briefly in real estate development and planned to pursue a dual degree in law and business at Stanford University. The program was unexpectedly put on hold, and he chose to pursue his law degree at Washington University. He recalls his time at the university as one of great intellectual growth. He remembers challenging courses and professors, including David Becker, Frank Miller, Jules Gerard, and William Jones, whose influence had a significant impact on him. After graduating with a specialization in real estate law, Warren moved to Colorado, where he spent several years in the homebuilding industry. It was a boom time in the real estate industry, he recalls. We built over 14,000 single-family homes in a six-state region. In 1974, he joined the faculty of Principia College, where he created and taught courses on the legal process, which were being promoted by the American Bar Association at that time. He also taught courses in business and economics and served for a time as Dean of Men. Warren returned to Colorado and the homebuilding industry in 1978 and was responsible for real estate development in a four-state region. In 1981, he and his late wife, Ruth, purchased and operated two lodges near Rocky Mountain National Park. Warren continues to run one of the lodges, Castle Mountain Lodge. He also serves on the boards of a number of family foundations and private trusts, where he provides legal counsel to second- and third-generation family members. Some of these private foundations and trusts were created to serve a purpose or need that no longer exists, he says. The challenge becomes how to distribute the funds within the parameters of the original trust. He emphasizes the importance of structuring charitable trusts to meet the priorities of the donor and charity while providing flexibility to use the funds for the changing needs of the organization for generations to come. Warren Clinton and Nancy Staudt, dean of the School of Law and the Howard & Caroline Cayne Professor of Law Warren s gifts and volunteer support demonstrate his confidence in Washington University, its leadership, and the priorities of the Leading Together campaign. Higher education and philanthropy have always been among the things that Ruth and I felt strongly about supporting, he says. A dedicated leader and volunteer for Washington University, he is a charter member of the Colorado Regional Cabinet. He also is a member of the Denver Campaign Committee and the Planned Giving Committee for the Leading Together campaign. His generous support includes an unrestricted gift through a charitable remainder unitrust to support the School of Law. I made my planned gift to help insure long-term support for the institution that was so important in my education, he says. I hope that my fellow law school graduates will join me in making their own planned gifts. Like Warren, you can establish a charitable remainder unitrust that provides payments to you or other beneficiaries, as well as significant tax benefits. To learn more, contact the Office of Planned Giving at (800) page 6

3 A LEGACY of Leadership and Impact I was a young man coming from a small town during the 1950s, and Washington University opened my eyes to a whole new world, says Mel F. Brown, AB 57, JD 61. Born in Carlinville, Illinois, Mel knew that he wanted to pursue an aggressive career path. He credits his mother with inspiring him to excel and attend Washington University. He says, My father was a cobbler, and he died when I was eight years old. My mother was a widow with two young children and an immigrant in a small town, and her options were limited. She was a very strong woman, and despite the obstacles, she created a successful retail shoe store from my father s shoe repair business. Her love, dedication and example were extraordinary. Mel also credits his late wife, Jacqueline, as being a strong source of support early in his career. As an undergraduate, Mel fully embraced all that Washington University had to offer. It was a marvelous experience, he says enthusiastically. My undergraduate academic advisor was Thomas Eliot, who eventually became chancellor. I had outstanding professors such as Merle Kling, Huston Smith, and Guy Davenport. I also participated in Greek life and was a member of Lock and Chain, Thurtene Honorary, and Omicron Delta Kappa. After earning a bachelor s degree in political science and serving in the military, Mel realized that he would need more focused training and returned to Washington University to earn a law degree. After graduation, he worked briefly for a law firm and subsequently accepted a position as staff attorney with a small finance company that had been acquired by ITT Corporation. Mel quickly rose through the ranks, and over the next four decades he built a distinguished career with ITT that culminated as president of ITT Commercial Finance. He subsequently served as president, chief executive officer, and vice chairman of the board of Deutsche Financial Services. Mel recently retired as a principal of Fromel Consulting and chairman of Triad Bank. He has served Washington University in volunteer leadership roles for many years. A former member of the Board of Trustees and a founding and current member of the Law National Council, he also has served as president of the William Greenleaf Eliot Society, executive vice chair and chair of the Alumni Board of Governors, and as a member of the law school s campaign committee for Leading Together. The School of Law honored him with its Distinguished Alumni Award in page 1

4 1996 and the Dean s Medal in He also received the Arts & Sciences Distinguished Alumni Award in 2007 and a Distinguished Alumni Award at Founders Day in Mel s longstanding service and generosity on behalf of Washington University are an inspiration to all. He and Pamela, his wife of 23 years, have made many gifts to the School of Law, including an estate commitment that will support The Mel and Pamela Brown Family Visiting Professorship and annual support for the Mel and Pamela Brown Family Visiting Scholars Program. They also sponsor the Mel and Pamela Brown Scholar in Law as well as a fund that supports law graduates who pursue careers in public service. Reflecting on his motivation for supporting the university through his planned and current gifts, Mel says, Washington University shaped my life. I am inspired by the exceptional leadership of Bill Danforth and Mark Wrighton and the vision that has made Washington University the preeminent institution it is today. I hope my support will help to continue that trajectory for the law school, where the reputation for excellence continues to grow under Nancy Staudt s visionary leadership. Like Mel, you can support Washington University through a combination of lifetime and planned gifts. For information, contact the Office of Planned Giving at (800) Charitable Gift Annuities: Predictable Payments in a Fluctuating Market Continued volatility in financial markets has left many looking for more predictable forms of income. If you are interested in a secure and predictable way to increase income and reduce taxes, consider the benefits of establishing a charitable gift annuity with Washington University: Fixed lifetime payments to you and/or your spouse or another beneficiary based on the age(s) of the recipient(s) A charitable income tax deduction for a portion of your gift A portion of the payments are usually tax-free Capital gain tax savings when you use appreciated securities to fund your gift (Many alumni and friends have funded charitable gift annuities with appreciated securities that were generating minimal dividends.) Support for your school or another purpose at Washington University GIFT ANNUITY SAMPLE PAYMENT RATES* ONE LIFE AGE FIXED RATE % % % % % % % TWO LIVES AGES *Rates are subject to change. FIXED RATE 60 & % 65 & % 70 & % 75 & % 80 & % 85 & % 90 & % For a confidential illustration including specific payment rate, tax deduction and capital gain tax benefits based on your age, please contact the Office of Planned Giving at (314) or (800) or plannedgiving@wustl.edu. page 2

5 Tax-Wise Giving Charitable Tax-Free IRA Gifts Extended Permanently Good news! Tax-free charitable IRA gifts were made permanent at the end of 2015, which means that individuals age 70 1 / 2 and older can make tax-free gifts totaling up to $100,000 per calendar year directly from their IRA to Washington University and other qualified public charities. This giving opportunity is particularly beneficial for donors who may not need their annual required minimum distribution or who want to make a larger tax-free charitable gift from an IRA. By directing your gift directly to the university, you do not report the IRA distribution as income. This is particularly useful if you do not itemize your deductions. As with other gifts, you can designate the purpose for which the gift is to be used. To make a tax-free charitable gift from your IRA: years of age or older when the distribution is made IRA transfer must go directly from your IRA to Washington University You must be 70½ years of age or older when the distribution is made. The transfer must go directly from your IRA to Washington University. The provision has been made permanent. You may make tax-free transfers from your IRA to a charity or charities totaling up to $100,000 each calendar year. Your spouse may also be eligible to make such gifts up to $100,000 from his/her IRA. A charitable rollover gift from your IRA will count toward your minimum distribution requirement. Gifts from an IRA may only be used to make an outright gift to a qualified public charity, such as Washington University. Tax-free charitable IRA rollover gifts cannot be used to fund a gift annuity, charitable remainder trust, a donor advised fund, or a private foundation. Please remember that tax-free charitable IRA gifts must transfer directly from your IRA to the university. To learn more, contact the Office of Planned Giving at (800) or plannedgiving@wustl.edu. page 3

6 BROOKINGS PARTNERS Passion. Plan. Impact. I am interested in supporting Washington University in my will or trust. I would like a personal illustration of how a charitable gift annuity would benefit me. Use the amount checked below for my illustration: $5,000 $10,000 $25,000 $50,000 other $ FOLD IN HALF AND SEAL. PLEASE DO NOT STAPLE. My gift may be: cash securities ($ ) (cost basis) My birth date is. Please include a second individual whose birth date is. I am interested in making a gift of real estate & receiving lifetime payments. I have included Washington University in my estate plan. I wish to join the Robert S. Brookings Partners in recognition of my planned gift for the university. I am interested in designating Washington University as beneficiary of my IRA, 401K or other qualified retirement plan. Thank you for supporting Washington University! Name (Please Print) Address City/State/Zip Daytime Phone Preferred Consult with your legal or tax advisor before making a charitable gift. PLANNEDGIVING.WUSTL.EDU Your one-stop resource for: Tax-efficient assets to give including IRAs, Real Estate and Securities Planned Giving Calculator providing estimated income payments, income tax deductions, and capital gain tax savings for charitable gift annuities and charitable trusts Information on how to make a planned gift Financial and tax benefits of planned gifts Legislation that impacts planned giving Planned Giving salons and events Donor profiles and features page 4

7 The Robert S. Brookings Partners recognizes individuals who have chosen to support Washington University through estate gifts, life income plans or other planned gifts. The generosity of these donors helps ensure the continued excellence of the university for generations to come. For information or to notify us of a gift in your will, trust or other planned gift, please contact the Office of Planned Giving at or page 5

8 BROOKINGS PARTNERS SUMMER 2016 What s inside: A Legacy of Leadership and Impact As an undergraduate and later a law student, Mel F. Brown AB 57, JD 61 excelled academically and was a leader among his peers. He continues to impact the university through his volunteer leadership roles and generous support that includes a planned gift to support the School of Law. See pages 1 & 2. Charitable Gift Annuities: Predictable Payments in a Fluctuating Market Continued volatility in financial markets has left many looking for more predictable forms of income. If you are interested in a secure and predictable way to increase income and reduce taxes, consider the benefits of establishing a charitable gift annuity with Washington University. See page 2. Building a Strong Foundation for Future Generations Warren Clinton JD 70 believes that his legal education provided a strong foundation for success throughout his career. In gratitude, his many gifts include a planned gift to provide future support for the School of Law. See page 6. Charitable Tax-Free IRA Gifts Extended Permanently Good news! Tax-free charitable IRA gifts were made permanent, which means that individuals age 70 1 / 2 and older can make tax-free gifts totaling up to $100,000 per calendar year directly from their IRA to Washington University and other qualified public charities. See page 3. (800) (314) plannedgiving@wustl.edu plannedgiving.wustl.edu Office of Planned Giving Washington University in St. Louis Campus Box 1193 One Brookings Drive St. Louis, MO