a host of charitable options 1. outright gift leon winans ... · loren pavlovic ’12, caitlin...
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We
Are
Her
e to
Hel
pA
gift
of r
eal e
stat
e ca
n be
a p
ower
ful p
lann
ing
tool
fo
r a c
hari
tabl
y m
inde
d pe
rson
, and
we
wan
t to
be
help
ful a
ny w
ay w
e ca
n. F
or a
sta
rt, w
e w
ould
like
to
send
you
a c
ompl
imen
tary
cop
y of
our
boo
klet
, Gif
t P
lann
ing
Opp
ortu
niti
es w
ith
Rea
l Est
ate.
To
get
your
cop
y, s
impl
y re
turn
the
encl
osed
car
d. I
f you
pr
efer
, you
can
cal
l or e
-mai
l us
at:
(585
) 27
5-75
47(8
00)
Mel
iora
(635
-467
2)
krec
kel@
alum
ni.r
oche
ster
.edu
Or,
visi
t our
Web
site
at
ww
w.r
oche
ster
.pla
nned
gift
s.or
g
Comments_______________________________________
________________________________________________
________________________________________________
________________________________________________
________________________________________________
________________________________________________
CONFIDENTIALWe’d like to hear from you.
We invite you to call us, return this reply card, or visit our Web site (www.rochester.plannedgifts.org) to request a complimentary copy of our booklet, Gift Planning Opportunities with Real Estate. We would be happy to meet with you or your advisor about a gift to the University of Rochester.
Please send me a free copy of your booklet, Gift Planning Opportunities with Real Estate.
I am pleased to inform you that I
have included
am considering including
the University of Rochester in my estate plans.
(Please fold and tape closed before mailing.)
Please send me information on the following: (Please check)
Charitable trusts Charitable gift annuities Real estate: retained life estate Donor-advised funds Retirement-plan gifts George Eastman Circle
______________________________________________Name
______________________________________________School/Class
______________________________________________Address
______________________________________________City/State/ZIP
______________________________________________Business Phone Home Phone
______________________________________________Birth Date(s)
______________________________________________E-Mail Address
(Please Print)
/
/ 590
Mt.
Hop
e A
venu
eR
oche
ster
, New
Yor
k 14
620
Non
prof
it O
rg.
U.S
. Pos
tage
PA
IDIn
dian
apol
is, I
NP
erm
it N
o. 8
478
DETAC
H H
ERE
5
Spring 2009 • Issue 31
You
shou
ld co
nsul
t you
r att
orne
y ab
out t
he a
pplic
abili
ty to
you
r ow
n sit
uatio
n of
the l
egal
pri
ncip
les co
ntai
ned
here
in.
Leon Winans ’30 — Gift of His Home Fulfilled an Unimaginable Legacy
Leon Winans would be described by many as a man of modest means. Through hard work he had paid for his home in Clarence, New York, and by age 80 built an investment portfolio, bringing the total value of his estate to about $180,000. Little did he know his generosity would be noted more than a decade after his passing.
Leon cherished his experience at the University. He never missed a class reunion, was an enthusiastic volunteer, and made annual gifts like clockwork.
Leon aspired to do more. In his later years, he stayed awake at night mulling over various strategies that would enable him to fulfill his obligations to his family and his desire to pass on a meaningful legacy to the University.
Feb. 17, 1985Dear Jack:
You wrote me a month or two ago and asked me about leaving the University my estate....
I have been debating this for some time and finally last night, a solution came to me, of turning our home over to the University to sell after my wife decides to move....
Sincerely yours,Leon Henry Winans ’30 Interpres, 1931 (b. 1905–d. 1994)
continued on inside
A Host of Charitable Options1. Outright Gift
Many find that appreciated real estate is the best asset to give because of the ability to reduce or even eliminate the capital-gain tax that will be due if the property is sold. Additionally, the donor can claim a deduction for the property’s full fair-market value.
2. Bargain Sale
An owner transfers real estate to a charitable organization in exchange for a payment that is less than the full value of the property. Typically, the donor qualifies for a charitable deduction equal to the difference between the fair-market value of the property and the amount of the payment received.
3. Retained Life Estate
With a gift of a remainder interest with a retained life estate, you receive a valuable charitable deduction by transferring ownership to the University of Rochester while retaining the right to live in your home for life.
4. Charitable Remainder Trust
Real estate is an excellent asset to fund a charitable remainder trust, which makes payments for life, or for a term of up to 20 years, to one or more designated beneficiaries. These payments are based on the value of the trust’s assets. At the termination of the trust, the remaining assets pass to a designated charity. The value of this “charitable remainder” qualifies for a charitable deduction.
Real Estate … continued from page 3
Gif
t P
lann
ing
Opp
ortu
niti
es
w
ith
Rea
l Est
ate
NO
PO
STA
GE
NE
CE
SSAR
Y IF
MA
ILE
D IN
TH
E
UN
ITE
D ST
AT
ES
BU
SIN
ES
S R
EP
LY
MA
ILFIr
St-C
la
SS Ma
Il P
er
MIt
no
. 137 ro
CH
eSt
er
, nY
PO
STA
GE
WIL
L B
E P
AID
BY
AD
DR
ESSE
E
UN
IvE
RSIT
Y O
F RO
CH
EST
ER
OFFIC
E O
F TR
UST
S AN
D E
STA
TE
S590 M
T. H
OP
E A
vE
.P
o b
ox
23029r
oC
He
Ste
r, n
Y 14692-9803
Office of Trusts & Estates
(585) 275-7547(800) Meliora (635-4672) kreckel@alumni.rochester.edu www.rochester.plannedgifts.org
Questions or Comments?
2 3 4
2008–2009 Harmon S. Potter Scholarship Recipients: Loren Pavlovic ’12, Caitlin Morrison ’12, Lillian Dickerson ’12, Conor Flynn ’12, James vavra ’12, Matthew Doyle ’12. Not pictured: Rheannon Harvey ’12, Margaret Hill ’12, and Daniel Wolfanger ’12.
In 1985, he and his wife Eva made an agreement with the University by which they would make a gift of their home but retain the right to live in it until the passing of the survivor. This gift represented one-third of Leon’s estate.
Although it would have brought him extraordinary satisfaction, Leon did not live to witness the tremendous impact of his generosity. At his direction, the proceeds from the sale of his home in 1993 became part of the Harmon S. Potter Scholarship Endowment, which is invested in the University’s diversified endowment. By 2008, the initial sum of $60,000 produced by the house sale had grown to $274,000. In addition, $115,000 has been drawn from the fund’s earnings to provide scholarships for deserving Rochester students. (See photo below.)
And this is only the beginning. By dreaming beyond the seeming limitations of his circumstances, Leon left a legacy benefiting undergraduates for countless generations to come.
Leon Winans ’30 … continued from cover Making Your Real Estate Work for YouWhy Consider a Gift of Real Estate?
• It may be an appealing alternative to sale of appreciated property, because capital-gain tax liability is reduced
• You can retain cash and other liquid assets
• Property management and sale responsibilities can be minimized or eliminated
• annual maintenance costs can be converted into a lifelong income stream
• Significant charitable objectives can be realized
Houle Station, donated outright by Glenn and Jeannine ’56N Houle in December 2008, will support a scholarship endowment for School of Nursing students. “The gifting of Houle Station is an act of gratitude for all the School has meant to our family.”
Highly Diversified UR Endowment Supports Long-Term Growth
Gifts destined for endowment purposes have enjoyed respectable growth in excess of public benchmarks, due to the University’s widely diversified investment strategy. In the past eight years, Rochester’s endowment has cumulatively provided more than $600 million in support of the University’s academic programs, while also increasing in value from $1.1 billion to approximately $1.4 billion. The investment strategy serves as a successful steward not only for gifts earmarked for endowment, as evidenced by the four-fold growth in Leon Winans’ gift over the past 15 years, but also for donors with charitable remainder trusts (CRTs).
Since 2007, the assets of all new CRTs for which the University serves as trustee have been invested in the University’s endowment. trust beneficiaries may enjoy higher relative trust payments, and the University benefits through higher remainder-interest values.
University of Rochester Endowment Asset Allocation June 30, 2008
Fixed Income, 6.5%
International Equity, 17.6%
Domestic Equity, 19.4%
Hedge, 28.3%
Distressed, 2.6%
Venture, 3.2%
Buyouts, 10.7%
Real Estate, 7.5%
Mining/Commodities, 0.1%
Timber, 1.4%Energy, 2.7%
continued on page 5
NO
PO
STA
GE
NE
CE
SSAR
Y IF
MA
ILE
D IN
TH
E
UN
ITE
D ST
AT
ES
BU
SIN
ES
S R
EP
LY
MA
ILFIr
St-C
la
SS Ma
Il P
er
MIt
no
. 137 ro
CH
eSt
er
, nY
PO
STA
GE
WIL
L B
E P
AID
BY
AD
DR
ESSE
E
UN
IvE
RSIT
Y O
F RO
CH
EST
ER
OFFIC
E O
F TR
UST
S AN
D E
STA
TE
S590 M
T. H
OP
E A
vE
.P
o b
ox
23029r
oC
He
Ste
r, n
Y 14692-9803
Office of Trusts & Estates
(585) 275-7547(800) Meliora (635-4672) kreckel@alumni.rochester.edu www.rochester.plannedgifts.org
Questions or Comments?
2 3 4
2008–2009 Harmon S. Potter Scholarship Recipients: Loren Pavlovic ’12, Caitlin Morrison ’12, Lillian Dickerson ’12, Conor Flynn ’12, James vavra ’12, Matthew Doyle ’12. Not pictured: Rheannon Harvey ’12, Margaret Hill ’12, and Daniel Wolfanger ’12.
In 1985, he and his wife Eva made an agreement with the University by which they would make a gift of their home but retain the right to live in it until the passing of the survivor. This gift represented one-third of Leon’s estate.
Although it would have brought him extraordinary satisfaction, Leon did not live to witness the tremendous impact of his generosity. At his direction, the proceeds from the sale of his home in 1993 became part of the Harmon S. Potter Scholarship Endowment, which is invested in the University’s diversified endowment. By 2008, the initial sum of $60,000 produced by the house sale had grown to $274,000. In addition, $115,000 has been drawn from the fund’s earnings to provide scholarships for deserving Rochester students. (See photo below.)
And this is only the beginning. By dreaming beyond the seeming limitations of his circumstances, Leon left a legacy benefiting undergraduates for countless generations to come.
Leon Winans ’30 … continued from cover Making Your Real Estate Work for YouWhy Consider a Gift of Real Estate?
• It may be an appealing alternative to sale of appreciated property, because capital-gain tax liability is reduced
• You can retain cash and other liquid assets
• Property management and sale responsibilities can be minimized or eliminated
• annual maintenance costs can be converted into a lifelong income stream
• Significant charitable objectives can be realized
Houle Station, donated outright by Glenn and Jeannine ’56N Houle in December 2008, will support a scholarship endowment for School of Nursing students. “The gifting of Houle Station is an act of gratitude for all the School has meant to our family.”
Highly Diversified UR Endowment Supports Long-Term Growth
Gifts destined for endowment purposes have enjoyed respectable growth in excess of public benchmarks, due to the University’s widely diversified investment strategy. In the past eight years, Rochester’s endowment has cumulatively provided more than $600 million in support of the University’s academic programs, while also increasing in value from $1.1 billion to approximately $1.4 billion. The investment strategy serves as a successful steward not only for gifts earmarked for endowment, as evidenced by the four-fold growth in Leon Winans’ gift over the past 15 years, but also for donors with charitable remainder trusts (CRTs).
Since 2007, the assets of all new CRTs for which the University serves as trustee have been invested in the University’s endowment. trust beneficiaries may enjoy higher relative trust payments, and the University benefits through higher remainder-interest values.
University of Rochester Endowment Asset Allocation June 30, 2008
Fixed Income, 6.5%
International Equity, 17.6%
Domestic Equity, 19.4%
Hedge, 28.3%
Distressed, 2.6%
Venture, 3.2%
Buyouts, 10.7%
Real Estate, 7.5%
Mining/Commodities, 0.1%
Timber, 1.4%Energy, 2.7%
continued on page 5
NO
PO
STA
GE
NE
CE
SSAR
Y IF
MA
ILE
D IN
TH
E
UN
ITE
D ST
AT
ES
BU
SIN
ES
S R
EP
LY
MA
ILFIr
St-C
la
SS Ma
Il P
er
MIt
no
. 137 ro
CH
eSt
er
, nY
PO
STA
GE
WIL
L B
E P
AID
BY
AD
DR
ESSE
E
UN
IvE
RSIT
Y O
F RO
CH
EST
ER
OFFIC
E O
F TR
UST
S AN
D E
STA
TE
S590 M
T. H
OP
E A
vE
.P
o b
ox
23029r
oC
He
Ste
r, n
Y 14692-9803
Office of Trusts & Estates
(585) 275-7547(800) Meliora (635-4672) kreckel@alumni.rochester.edu www.rochester.plannedgifts.org
Questions or Comments?
2 3 4
2008–2009 Harmon S. Potter Scholarship Recipients: Loren Pavlovic ’12, Caitlin Morrison ’12, Lillian Dickerson ’12, Conor Flynn ’12, James vavra ’12, Matthew Doyle ’12. Not pictured: Rheannon Harvey ’12, Margaret Hill ’12, and Daniel Wolfanger ’12.
In 1985, he and his wife Eva made an agreement with the University by which they would make a gift of their home but retain the right to live in it until the passing of the survivor. This gift represented one-third of Leon’s estate.
Although it would have brought him extraordinary satisfaction, Leon did not live to witness the tremendous impact of his generosity. At his direction, the proceeds from the sale of his home in 1993 became part of the Harmon S. Potter Scholarship Endowment, which is invested in the University’s diversified endowment. By 2008, the initial sum of $60,000 produced by the house sale had grown to $274,000. In addition, $115,000 has been drawn from the fund’s earnings to provide scholarships for deserving Rochester students. (See photo below.)
And this is only the beginning. By dreaming beyond the seeming limitations of his circumstances, Leon left a legacy benefiting undergraduates for countless generations to come.
Leon Winans ’30 … continued from cover Making Your Real Estate Work for YouWhy Consider a Gift of Real Estate?
• It may be an appealing alternative to sale of appreciated property, because capital-gain tax liability is reduced
• You can retain cash and other liquid assets
• Property management and sale responsibilities can be minimized or eliminated
• annual maintenance costs can be converted into a lifelong income stream
• Significant charitable objectives can be realized
Houle Station, donated outright by Glenn and Jeannine ’56N Houle in December 2008, will support a scholarship endowment for School of Nursing students. “The gifting of Houle Station is an act of gratitude for all the School has meant to our family.”
Highly Diversified UR Endowment Supports Long-Term Growth
Gifts destined for endowment purposes have enjoyed respectable growth in excess of public benchmarks, due to the University’s widely diversified investment strategy. In the past eight years, Rochester’s endowment has cumulatively provided more than $600 million in support of the University’s academic programs, while also increasing in value from $1.1 billion to approximately $1.4 billion. The investment strategy serves as a successful steward not only for gifts earmarked for endowment, as evidenced by the four-fold growth in Leon Winans’ gift over the past 15 years, but also for donors with charitable remainder trusts (CRTs).
Since 2007, the assets of all new CRTs for which the University serves as trustee have been invested in the University’s endowment. trust beneficiaries may enjoy higher relative trust payments, and the University benefits through higher remainder-interest values.
University of Rochester Endowment Asset Allocation June 30, 2008
Fixed Income, 6.5%
International Equity, 17.6%
Domestic Equity, 19.4%
Hedge, 28.3%
Distressed, 2.6%
Venture, 3.2%
Buyouts, 10.7%
Real Estate, 7.5%
Mining/Commodities, 0.1%
Timber, 1.4%Energy, 2.7%
continued on page 5
We
Are
Her
e to
Hel
pA
gift
of r
eal e
stat
e ca
n be
a p
ower
ful p
lann
ing
tool
fo
r a c
hari
tabl
y m
inde
d pe
rson
, and
we
wan
t to
be
help
ful a
ny w
ay w
e ca
n. F
or a
sta
rt, w
e w
ould
like
to
send
you
a c
ompl
imen
tary
cop
y of
our
boo
klet
, Gif
t P
lann
ing
Opp
ortu
niti
es w
ith
Rea
l Est
ate.
To
get
your
cop
y, s
impl
y re
turn
the
encl
osed
car
d. I
f you
pr
efer
, you
can
cal
l or e
-mai
l us
at:
(585
) 27
5-75
47(8
00)
Mel
iora
(635
-467
2)
krec
kel@
alum
ni.r
oche
ster
.edu
Or,
visi
t our
Web
site
at
ww
w.r
oche
ster
.pla
nned
gift
s.or
g
Comments_______________________________________
________________________________________________
________________________________________________
________________________________________________
________________________________________________
________________________________________________
CONFIDENTIALWe’d like to hear from you.
We invite you to call us, return this reply card, or visit our Web site (www.rochester.plannedgifts.org) to request a complimentary copy of our booklet, Gift Planning Opportunities with Real Estate. We would be happy to meet with you or your advisor about a gift to the University of Rochester.
Please send me a free copy of your booklet, Gift Planning Opportunities with Real Estate.
I am pleased to inform you that I
have included
am considering including
the University of Rochester in my estate plans.
(Please fold and tape closed before mailing.)
Please send me information on the following: (Please check)
Charitable trusts Charitable gift annuities Real estate: retained life estate Donor-advised funds Retirement-plan gifts George Eastman Circle
______________________________________________Name
______________________________________________School/Class
______________________________________________Address
______________________________________________City/State/ZIP
______________________________________________Business Phone Home Phone
______________________________________________Birth Date(s)
______________________________________________E-Mail Address
(Please Print)
/
/ 590
Mt.
Hop
e A
venu
eR
oche
ster
, New
Yor
k 14
620
Non
prof
it O
rg.
U.S
. Pos
tage
PA
IDIn
dian
apol
is, I
NP
erm
it N
o. 8
478
DETAC
H H
ERE
5
Spring 2009 • Issue 31
You
shou
ld co
nsul
t you
r att
orne
y ab
out t
he a
pplic
abili
ty to
you
r ow
n sit
uatio
n of
the l
egal
pri
ncip
les co
ntai
ned
here
in.
Leon Winans ’30 — Gift of His Home Fulfilled an Unimaginable Legacy
Leon Winans would be described by many as a man of modest means. Through hard work he had paid for his home in Clarence, New York, and by age 80 built an investment portfolio, bringing the total value of his estate to about $180,000. Little did he know his generosity would be noted more than a decade after his passing.
Leon cherished his experience at the University. He never missed a class reunion, was an enthusiastic volunteer, and made annual gifts like clockwork.
Leon aspired to do more. In his later years, he stayed awake at night mulling over various strategies that would enable him to fulfill his obligations to his family and his desire to pass on a meaningful legacy to the University.
Feb. 17, 1985Dear Jack:
You wrote me a month or two ago and asked me about leaving the University my estate....
I have been debating this for some time and finally last night, a solution came to me, of turning our home over to the University to sell after my wife decides to move....
Sincerely yours,Leon Henry Winans ’30 Interpres, 1931 (b. 1905–d. 1994)
continued on inside
A Host of Charitable Options1. Outright Gift
Many find that appreciated real estate is the best asset to give because of the ability to reduce or even eliminate the capital-gain tax that will be due if the property is sold. Additionally, the donor can claim a deduction for the property’s full fair-market value.
2. Bargain Sale
An owner transfers real estate to a charitable organization in exchange for a payment that is less than the full value of the property. Typically, the donor qualifies for a charitable deduction equal to the difference between the fair-market value of the property and the amount of the payment received.
3. Retained Life Estate
With a gift of a remainder interest with a retained life estate, you receive a valuable charitable deduction by transferring ownership to the University of Rochester while retaining the right to live in your home for life.
4. Charitable Remainder Trust
Real estate is an excellent asset to fund a charitable remainder trust, which makes payments for life, or for a term of up to 20 years, to one or more designated beneficiaries. These payments are based on the value of the trust’s assets. At the termination of the trust, the remaining assets pass to a designated charity. The value of this “charitable remainder” qualifies for a charitable deduction.
Real Estate … continued from page 3
Gif
t P
lann
ing
Opp
ortu
niti
es
w
ith
Rea
l Est
ate
We Are Here to HelpA gift of real estate can be a powerful planning tool for a charitably minded person, and we want to be helpful any way we can. For a start, we would like to send you a complimentary copy of our booklet, Gift Planning Opportunities with Real Estate. To get your copy, simply return the enclosed card. If you prefer, you can call or e-mail us at:
(585) 275-7547(800) Meliora (635-4672) kreckel@alumni.rochester.edu
Or, visit our Web site at www.rochester.plannedgifts.org
Com
ments_______________________________________
________________________________________________
________________________________________________
________________________________________________
________________________________________________
________________________________________________
CO
NF
IDE
NT
IAL
We’d like to hear from
you.W
e invite you to call us, return this reply card, or visit our W
eb site (ww
w.rochester.plannedgifts.org) to request
a complim
entary copy of our booklet, Gift P
lanning O
pportunities with R
eal Estate. W
e would be happy
to meet w
ith you or your advisor about a gift to the U
niversity of Rochester.
Please send m
e a free copy of your booklet, G
ift Planning O
pportunities with R
eal Estate.
I am pleased to inform
you that I
have included
am considering including
the University of R
ochester in my estate plans.
(Please fold and tape closed before mailing.)
Please send m
e information on the follow
ing: (Please check)
Charitable trusts
Charitable gift annuities
Real estate: retained life estate
Donor-advised funds
Retirem
ent-plan gifts G
eorge Eastm
an Circle
______________________________________________N
ame
______________________________________________School/C
lass
______________________________________________A
ddress
______________________________________________C
ity/State/ZIP
______________________________________________B
usiness Phone Hom
e Phone
______________________________________________B
irth Date(s)
______________________________________________E
-Mail A
ddress
(Please P
rint)
//
590 Mt. Hope AvenueRochester, New York 14620
Nonprofit Org.U.S. Postage
PAIDIndianapolis, INPermit No. 8478
DETACH HERE
5
Spring 2009 • Issue 31
You should consult your attorney about the applicability to your own situation of the legal principles contained herein.
Leon W
inans ’30 — G
ift of His H
ome
Fulfilled an U
nimaginable L
egacy
Leon W
inans would be described by m
any as a man of m
odest means.
Through hard w
ork he had paid for his home in C
larence, New
York,
and by age 80 built an investment portfolio, bringing the total value of
his estate to about $180,000. Little did he know
his generosity would be
noted more than a decade after his passing.
Leon cherished his experience at the U
niversity. He never m
issed a class reunion, w
as an enthusiastic volunteer, and made annual gifts like clockw
ork.
Leon aspired to do m
ore. In his later years, he stayed awake at night m
ulling over various strategies that w
ould enable him to fulfill his obligations to his
family and his desire to pass on a m
eaningful legacy to the University.
Feb. 17, 1985
Dear Jack:
You wrote me a month or two ago and
asked me about leavi
ng the University
my estate....
I have been debati
ng this for
some
time and finally
last night,
a solutio
n
came to me, of turning our home over
to the University
to sell
after my
wife
decid
es to move....
Sincerely
yours,
Leon H
enry Winans ’30
Interpres, 1931 (b. 1905–d. 1994)
continued on inside
A H
ost of Charitable O
ptions1. O
utright Gift
Many find that appreciated real estate is the best
asset to give because of the ability to reduce or even elim
inate the capital-gain tax that will be due if the
property is sold. Additionally, the donor can claim
a deduction for the property’s full fair-m
arket value.
2. Bargain Sale
An ow
ner transfers real estate to a charitable organization in exchange for a paym
ent that is less than the full value of the property. T
ypically, the donor qualifies for a charitable deduction equal to the difference betw
een the fair-market value of the
property and the amount of the paym
ent received.
3. Retained L
ife Estate
With a gift of a rem
ainder interest with a retained life
estate, you receive a valuable charitable deduction by transferring ow
nership to the University of R
ochester w
hile retaining the right to live in your home for life.
4. Charitable R
emainder T
rust
Real estate is an excellent asset to fund a charitable
remainder trust, w
hich makes paym
ents for life, or for a term
of up to 20 years, to one or more
designated beneficiaries. These paym
ents are based on the value of the trust’s assets. A
t the term
ination of the trust, the remaining assets pass
to a designated charity. The value of this “charitable
remainder” qualifies for a charitable deduction.
Real E
state …
continued from page 3
Gift PlanningOpportunities with Real Estate
We
Are
Her
e to
Hel
pA
gift
of r
eal e
stat
e ca
n be
a p
ower
ful p
lann
ing
tool
fo
r a c
hari
tabl
y m
inde
d pe
rson
, and
we
wan
t to
be
help
ful a
ny w
ay w
e ca
n. F
or a
sta
rt, w
e w
ould
like
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klet
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ortu
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ate.
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00)
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iora
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oche
ster
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oche
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Comments_______________________________________
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CONFIDENTIALWe’d like to hear from you.
We invite you to call us, return this reply card, or visit our Web site (www.rochester.plannedgifts.org) to request a complimentary copy of our booklet, Gift Planning Opportunities with Real Estate. We would be happy to meet with you or your advisor about a gift to the University of Rochester.
Please send me a free copy of your booklet, Gift Planning Opportunities with Real Estate.
I am pleased to inform you that I
have included
am considering including
the University of Rochester in my estate plans.
(Please fold and tape closed before mailing.)
Please send me information on the following: (Please check)
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oche
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k 14
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Non
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it O
rg.
U.S
. Pos
tage
PA
IDIn
dian
apol
is, I
NP
erm
it N
o. 8
478
DETAC
H H
ERE
5
Spring 2009 • Issue 31
You
shou
ld co
nsul
t you
r att
orne
y ab
out t
he a
pplic
abili
ty to
you
r ow
n sit
uatio
n of
the l
egal
pri
ncip
les co
ntai
ned
here
in.
Leon Winans ’30 — Gift of His Home Fulfilled an Unimaginable Legacy
Leon Winans would be described by many as a man of modest means. Through hard work he had paid for his home in Clarence, New York, and by age 80 built an investment portfolio, bringing the total value of his estate to about $180,000. Little did he know his generosity would be noted more than a decade after his passing.
Leon cherished his experience at the University. He never missed a class reunion, was an enthusiastic volunteer, and made annual gifts like clockwork.
Leon aspired to do more. In his later years, he stayed awake at night mulling over various strategies that would enable him to fulfill his obligations to his family and his desire to pass on a meaningful legacy to the University.
Feb. 17, 1985Dear Jack:
You wrote me a month or two ago and asked me about leaving the University my estate....
I have been debating this for some time and finally last night, a solution came to me, of turning our home over to the University to sell after my wife decides to move....
Sincerely yours,Leon Henry Winans ’30 Interpres, 1931 (b. 1905–d. 1994)
continued on inside
A Host of Charitable Options1. Outright Gift
Many find that appreciated real estate is the best asset to give because of the ability to reduce or even eliminate the capital-gain tax that will be due if the property is sold. Additionally, the donor can claim a deduction for the property’s full fair-market value.
2. Bargain Sale
An owner transfers real estate to a charitable organization in exchange for a payment that is less than the full value of the property. Typically, the donor qualifies for a charitable deduction equal to the difference between the fair-market value of the property and the amount of the payment received.
3. Retained Life Estate
With a gift of a remainder interest with a retained life estate, you receive a valuable charitable deduction by transferring ownership to the University of Rochester while retaining the right to live in your home for life.
4. Charitable Remainder Trust
Real estate is an excellent asset to fund a charitable remainder trust, which makes payments for life, or for a term of up to 20 years, to one or more designated beneficiaries. These payments are based on the value of the trust’s assets. At the termination of the trust, the remaining assets pass to a designated charity. The value of this “charitable remainder” qualifies for a charitable deduction.
Real Estate … continued from page 3
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Office of Trusts & Estates
(585) 275-7547(800) Meliora (635-4672) kreckel@alumni.rochester.edu www.rochester.plannedgifts.org
Questions or Comments?
2 3 4
2008–2009 Harmon S. Potter Scholarship Recipients: Loren Pavlovic ’12, Caitlin Morrison ’12, Lillian Dickerson ’12, Conor Flynn ’12, James vavra ’12, Matthew Doyle ’12. Not pictured: Rheannon Harvey ’12, Margaret Hill ’12, and Daniel Wolfanger ’12.
In 1985, he and his wife Eva made an agreement with the University by which they would make a gift of their home but retain the right to live in it until the passing of the survivor. This gift represented one-third of Leon’s estate.
Although it would have brought him extraordinary satisfaction, Leon did not live to witness the tremendous impact of his generosity. At his direction, the proceeds from the sale of his home in 1993 became part of the Harmon S. Potter Scholarship Endowment, which is invested in the University’s diversified endowment. By 2008, the initial sum of $60,000 produced by the house sale had grown to $274,000. In addition, $115,000 has been drawn from the fund’s earnings to provide scholarships for deserving Rochester students. (See photo below.)
And this is only the beginning. By dreaming beyond the seeming limitations of his circumstances, Leon left a legacy benefiting undergraduates for countless generations to come.
Leon Winans ’30 … continued from cover Making Your Real Estate Work for YouWhy Consider a Gift of Real Estate?
• It may be an appealing alternative to sale of appreciated property, because capital-gain tax liability is reduced
• You can retain cash and other liquid assets
• Property management and sale responsibilities can be minimized or eliminated
• annual maintenance costs can be converted into a lifelong income stream
• Significant charitable objectives can be realized
Houle Station, donated outright by Glenn and Jeannine ’56N Houle in December 2008, will support a scholarship endowment for School of Nursing students. “The gifting of Houle Station is an act of gratitude for all the School has meant to our family.”
Highly Diversified UR Endowment Supports Long-Term Growth
Gifts destined for endowment purposes have enjoyed respectable growth in excess of public benchmarks, due to the University’s widely diversified investment strategy. In the past eight years, Rochester’s endowment has cumulatively provided more than $600 million in support of the University’s academic programs, while also increasing in value from $1.1 billion to approximately $1.4 billion. The investment strategy serves as a successful steward not only for gifts earmarked for endowment, as evidenced by the four-fold growth in Leon Winans’ gift over the past 15 years, but also for donors with charitable remainder trusts (CRTs).
Since 2007, the assets of all new CRTs for which the University serves as trustee have been invested in the University’s endowment. trust beneficiaries may enjoy higher relative trust payments, and the University benefits through higher remainder-interest values.
University of Rochester Endowment Asset Allocation June 30, 2008
Fixed Income, 6.5%
International Equity, 17.6%
Domestic Equity, 19.4%
Hedge, 28.3%
Distressed, 2.6%
Venture, 3.2%
Buyouts, 10.7%
Real Estate, 7.5%
Mining/Commodities, 0.1%
Timber, 1.4%Energy, 2.7%
continued on page 5
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