Steps to a legacy
Stay Connected: UCLA’s First Century Society UCLA’s First Century Society is a group of generous benefactors who have chosen to secure the future of UCLA through deferred gifts or through their estate plans. The Society is an opportunity for donors to stay connected with the university and with each other. Our next Society event will be on June 3. Dr. A. Eugene Washington, Dean of the David Geffen School of Medicine and Vice Chancellor of Health Sciences at UCLA, will be the keynote speaker. Save the date!
Insights & Options Estate & Gift Planning News and Ideas your legacy matters n
11 Nobel Prizes, 3 Pulitzers
10 national Medals of Science
A top-5 U.S. hospital
A top-3 U.S. public university, in national and international rankings
214 Olympic medals
125 national championships
107 NCAA team championships
UCLA: Your Legacy in Action May 15, 2011: Your Legacy in Action brunch honoring First Century Society members and featuring some of UCLA’s brightest young scholars. Hosted by Chancellor Gene Block and Mrs. Carol Block, at the Chancellor’s Residence.
Giving Non-Cash Assets can Save More Though many choose to fund their charitable gift annuities with cash, others are finding that using stock that has increased in value but yields little income is a tax-wise way to fund a gift annuity. Consider this: If you own securities that have increased in value, using them for a gift annuity holds several benefits, such as: • Your payments and charitable income tax deduction are based on the securities’ full value, not just their original cost. • You will not owe capital gains tax on part of the increase in value. • Any remaining capital gains tax due will generally be spread over life expectancy. • You support UCLA while conserving cash for other purposes. • You make a wonderful gift that might not otherwise be possible.
Note: Please consult with your tax advisor prior to funding a charitable gift annuity to determine the best way to make your gift.
Why Share Your Plans? If you have included UCLA in your estate plans (or intend to), please let us know. UCLA would like to make sure your wishes are understood and that your gift will be used as you intend. W e can provide you and your advisors with sample bequest language to include in your will or living trust if desired. T he university would like to thank you and include you in our legacy group, First Century Society. UCLA handles all gift and bequest communications with the utmost care and confidentiality.
Insights & Options
Write us at: Office of Planned and Major Gifts 10920 Wilshire Blvd., Suite 1400 Los Angeles, CA 90024 Call us at: (800) 737-UCLA (8252) Visit us at: www.legacy.ucla.edu Email us at: firstname.lastname@example.org
The purpose of this publication is to provide general gift, estate, and financial planning information. It is not intended as legal, accounting, or other professional advice. For assistance in planning charitable gifts with tax and other financial implications, the services of appropriate advisors should be obtained. Consult an attorney for advice if your plans require revision of a will or other legal document. Tax deductions vary based on applicable federal discount rates, which can change on a monthly basis. Some opportunities may not be available in all states. ©MMXII RFSCO, Inc. All Rights Reserved. NAXX-12
inspiration, excellence, and hope UCLA is home to scholars and professionals who lead the way with innovation, life-changing education, and research. Here are just a few recent examples: • N ew hope against blindness: Jules Stein Eye Institute researchers transplanted retinal cells into two blind patients’ eyes and reported some positive results. • O h, what your cell phone can do! In 2011, UCLA Engineers developed a technology that can turn
Donors are part of UCLA’s achievements Insights & Options recently met with Jacqueline Weber, widow of Eugen Weber who was widely credited with building the UCLA history department into one of the nation’s best. He was also Dean of Social Sciences in 1976 and Dean of the College of Letters and Sciences from 1977 to 1982. Jacqueline supports the university in varied ways: She has established a charitable gift annuity to benefit the Library and another for the Department of History. She also made an outright gift to create a scholarship fund in the Honors and Undergraduate Program. v
a cell phone into a powerful microscope. In February 2012, they created a cell phonebased sensor that can detect life-threatening E. Coli bacteria. • F ighting to stop Parkinson’s: In March 2012, UCLA scientists, using zebra fish, found a way to prevent the toxicity of clumps that form at the cellular level in the brains of Parkinson’s patients and that are thought to be behind the debilitating disease. v
“ I am very attached to UCLA. For Eugen and me, it has been our family. The university has been extremely generous in terms of opportunities to teach and do research. That’s why I am motivated to help and give back. Eugen created the Honors Program because he really wanted to give access to excellent students who could not afford tuition. Once a year, I attend a reception where I meet with the students selected for the Eugen & Jacqueline Weber Endowed Undergraduate Research Scholarship and it makes me feel very good to get to know them and to help them.”
steps to a legacy
Reaching both philanthropic and financial goals
Charitable gift annuities can help reduce or eliminate income, estate, and capital gains taxes. Here’s how:
Many UCLA supporters have found that their desire to support UCLA and their financial well-being need not be competing goals.
A portion of the amount contributed is deductible for federal income tax purposes.
•G enerous fixed payments for life?
T here can be additional income tax savings depending on your state of residence.
Gift annuity payments vary according to the age of the annuitant (the older you are when you fund your gift annuity, the • T he satisfaction of making a welcome higher your payment rate will contribution to Gift annuity payment be). For instance, an 85-yearUCLA? rates for one person old who funds a $100,000 All these benefits can Age Rate Age Rate annuity will receive 7.8 % be obtained through a 90+ 9.0% 75 5.8% ($7,800) annually for life. simple charitable gift 85 7.8% 70 5.1% annuity. Retirement income
C apital gains tax can be reduced and delayed when property that has increased in value is used to fund a gift annuity. G ift annuity payments can be taxed more favorably than many other sources of income. A ssets used to fund gift annuities are typically removed from your taxable estate.
• Immediate reduction in your income tax? • L argely tax-free payments for a number
How much are the payments?
How would you like:
• R eduction of capital gains tax?
Many of UCLA’s alumni and friends have created a series For illustrative purposes only. A charitable gift annuity Contact us for current benefits of charitable gift annuities to and rates for other ages. can help ensure increase income in retirement additional income, years. Not only will payment rates from especially during retirement years. each annuity be higher, but over time you A UCLA charitable gift annuity will provide will be setting aside more funds to provide income that: a secure source of income when you may W ill not decrease in size, regardless of need it most. • the future performance of the economy. 80
• Is guaranteed by The UCLA Foundation. •W ill continue for as long as you and/or a loved one live.
UCLA’s gift annuity rates are based on the age(s) of the payment recipient(s), earnings assumptions for the assets that fund the annuity payments, and other factors. UCLA gift annuity reserves now exceed amounts required by the state of California.
Steady income for a loved one
Gift annuities can be structured so you and another person receive payments. Payments can be joint or first to you and then to someone else. Or, you may choose one or two persons other than yourself to benefit. This is an excellent way to provide assistance to a spouse, parent, sibling, friend, or other loved one. v
A Life-Saving Legacy
Increasing income from assets A gift annuity can also increase cash flow if you own assets that may have increased in value over time but are not yielding the interest or dividends you would like. Or, you may want to fund your annuity with cash that is providing less income in today’s environment of low interest rates.
steps to a legacy
Insights & Options recently spoke to Dr. Frances Hine’s niece, Mary Chabre, and to Devon Brown, UCLA’s Planned Giving Director, who both have fond memories of Dr. Hine’s devotion to art and of her staunch support of UCLA.
Dr. Frances Hine
Dr. Frances Hine, who passed away in 2009, was a multi-talented scholar, artist, educator, and a cherished member of the UCLA family. She was among the university’s most dedicated and generous donors.
Dr. Hine earned 2 degrees from UCLA: a B.A. in Education in 1939 and an M.A. in Art in 1955. She pursued a lifelong career in the arts as a teacher and arts education supervisor for El Segundo Unified School District. Next, she moved on to teach at the postsecondary level. Along the way, she became a prolific writer of scholarly articles on aesthetics, arts education, and visual awareness. She was keenly involved in art exhibit projects at LACMA and the Getty Museum. Upon retirement, Dr. Hine took residence at La Costa Glen in Carlsbad, where she enjoyed a very active lifestyle. She walked 3 miles a day, organized a watercolor painting group, used her computer to stay connected, and traveled worldwide. While she was consistently supporting UCLA’s Health Sciences research (leukemia research at UCLA’s Jonsson Comprehensive Cancer Center and research on chronic obstructive pulmonary disease (COPD) in the Division of Pulmonary Medicine at the David Geffen School of Medicine), Dr. Hine made the important decision to bequeath the residue of her estate to UCLA’s Division of Pulmonary and Critical Care Medicine. This division of UCLA is home to leading experts in the field who have introduced new treatments in areas such as advanced lung disease, pulmonary fibrosis, lung cancer, lung transplantation, COPD, and pulmonary arterial hypertension. In 2010, the Juanita and Carlos N. Hine Research Fund was established with Dr. Hine’s assets to help advance pulmonary and critical care research in perpetuity. v
Dedicated Benefactor Remembered
“ I remember Dr. Hine
as a very high-energy person who pursued her many interests with great determination,” Devon Brown reminisces, “It was hard to tell she was ill because she was on the go so much and had an incredibly positive approach to life. She was extremely generous to UCLA, and over the years, she established multiple charitable gift annuities to support research on leukemia and pulmonary medicine; she felt that if progress toward cures were going to happen, it would happen here, at UCLA.”
“ Dr. Hine was also a very
savvy woman in terms of managing her money and she used these charitable gift annuities as a source of fixed income to cover costs, such as her retirement community fees.”
“ My aunt’s attitude toward UCLA was one
of quiet support and respect,” Dr. Hine’s niece, Mary Chabre explains, “She wanted UCLA to benefit from her estate because she was the first to go to college in her family and the university really changed her life. She created the fund in her parents’ name to honor them.”