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Transcript of Gift Planning Newsletter
Leaving Something BehindAn Alumnus’ Estate Gift Provides for the Future
“He came here as a refugee when he
was eleven years old and didn’t speak
English,” says his wife, Catherine
O’Donnell Pazemenas. “But he worked
very hard.” And Penn State offered Vytas
an opportunity to forge an exciting
future. “He really appreciated the
education he got there,” Cathy recalls.
“He thought it was an all-around great
engineering background.”
Inspired by the quality of the
instruction, facilities, and research efforts
he saw during his visits, Vytas hoped to
deepen his relationship with Penn State.
“Education was very important to his
family and to him,” Cathy says. “And he
thought that any other students would be
very, very fortunate to get the same kind
of education that he did.”
Sadly, Vytas passed away in 2009 after
a sudden, brief illness. But in the months
before his death, he took steps to ensure
that he would have an impact on Penn
State students in the future: He and Cathy
established a bequest to Penn State’s
Department of Electrical Engineering
Remembering Penn State
6
contract engineering and manufacturing
firm specializing in the development of
medical devices. In recognition of his
professional achievements, Vytas was
posthumously honored with the College
of Engineering Outstanding Engineering
Alumni Award in 2010.
“Vytas loved being an engineer,”
Cathy recalls, “and he liked interacting
with other engineers.” That enthusiasm
for his field was part of what pleased him
so much about reconnecting with Penn
State, as he explored the
research and teaching
in his old department.
As Cathy notes, “he
found it very exciting
what the faculty and
students were doing,
the course offerings,
and their plans for the future.” Thanks
to his and Cathy’s gift, Vytas will leave a
lasting mark on the department he loved.
Penn State Office of Gift Planning
through their living trust. Cathy later
worked with the Office of Gift Planning
to structure a gift that will establish
a named department head position,
a faculty chair, or other endowment,
depending on the department’s needs
and the funds available when the bequest
is ultimately realized.
“Regardless of its final form,
the Pazemenas’ gift will give the
department crucial support to keep our
research and teaching moving forward,”
says College of Engineering Dean
David Wormley, who remembers Vytas
fondly as a consummate professional
with a vibrant intellect.
In a career built upon his technical
abilities and entrepreneurial talents—
he’d started his first business, repairing
televisions, at age fifteen—Vytas held
various engineering and leadership
positions with established companies,
and ultimately founded his own
company in Irvine, California. Aubrey
Group, named after the hero in Patrick
O’Brian’s series of nautical novels, is a
Michael J. DegenhartExecutive Director
Brian J. McCullough, Esq.Gift Planning Officer
Larry J. MrozGift Planning Officer
Thomas L. ParrishAssociate Gift Planning Officer
Patricia L. Roenigk, Esq.Director, Individual Gift Planning
Jeanne M. SalladeAssistant Director
Terri L. AssaelGift Planning Assistant
Office of Gift Planning214 The 103 Building University Park, PA 16802
814-865-0872 Toll-free: [email protected]
www.giftplanning.psu.edu
Gift Planning Newsletter
A SIMPLE WAYTo Leave Your Mark on the World
Remembering Penn State
5
Gift Planning NewsletterSPRING 2012
When Vytas Pazemenas first came to Penn State as a freshman in 1957, just a few years after his family fled the Soviet occupation of Lithuania, he hoped that a college degree would be a path to a better life in the United States. By the time he returned in 2008 as the featured speaker in the College of Engineering’s Gaelen Entrepreneurship Speaker Series, he had parlayed his degree in electrical engineering into an impressive career capped by the founding of his own successful firm.
Inside This Issue: PAGE 2: An exciting new gift option PAGE 3: A unique gift that helps you to preserve family wealth PAGE 5: A simple change that helps Penn State students PAGE 6: Remember Penn State in your will
Vytas Pazemenas
Leaving Something BehindAn Alumnus’ Estate Gift Provides for the Future
How Will 2012 and 2013 Tax Law Changes Affect You?Continued from Page 1
Continued on Page 6
You can easily modify the beneficiaries
of the following assets at any time to
meet your changing needs:
IRAs and retirement plans
Life insurance policies
Insurance annuities
Changing BeneficiariesTo name or change a beneficiary,
contact the administrator of the IRA
or retirement plan, or your insurance
company, for a change-of-beneficiary
form. Decide what percentage of the
plan’s value you would like us to
receive and name Penn State, along with
the stated percentage, on the beneficiary
form. Return the form to your plan
administrator or insurance company.
Changing beneficiaries is also
tax-smart. If you name loved ones as
beneficiaries of these assets, federal
income taxes can erode up to 35
percent of the assets. As a nonprofit
organization, Penn State bypasses any
taxes and receives the full amount.
Naming Penn State as the beneficiary of certain assets is a simple way to make a lasting impact.
Holding Depreciated Securities?In response to questions from our loyal alumni and friends, here are the details about making a gift using depreciated securities.
If you have stocks that have
experienced significant declines and
are now worth less than what you paid
for them, consider using those stocks
to make a gift to Penn State.
For maximum tax savings, sell the
stock, take any allowable loss, and
then donate the cash proceeds to us.
This way, you’ll obtain a charitable
deduction for the cash gift, and you
can offset the losses against any gains
this year. If your overall losses exceed
your gains, you can deduct up to
$3,000 of the excess loss from
ordinary income—and carry over
excess losses to future years.
To learn more, contact the Office
of Gift Planning at 888-800-9170.
YOU’RE INVITED! The Atherton SocietyWhen you support the future of Penn State through a planned
gift, you join a group of alumni and friends who share a love
and vision for our University and, more important, our students.
This inspirational group is called The Atherton Society, named
for George W. Atherton, Penn State’s seventh president, and
his wife, Frances. Their efforts laid the groundwork for today’s
achievements, much like your gifts do today.
Join UsMembership is offered to individuals who have included Penn
State in their estate plans or as a beneficiary of a planned gift.
Your bequest commitment can help us reach the goals of For
the Future: The Campaign for Penn State Students. Sharing
your intentions with us allows Penn State to ensure your wishes
are fulfilled in the future.
Remember Penn State in Your WillA gift to Penn State in your will or living trust, known as a bequest, is a simple way to extend your support beyond your lifetime. A bequest allows you to make a significant difference without parting with any assets today. You can leave us a specific asset, a specific dollar amount, or a percentage of your estate. And you can change your mind at any time should your circumstances change. Best of all, this simple and straightforward gift can be added to your will in as little as one sentence. Contact us today to learn more.
If you updated your estate plans in 2011, you’re in luck—this year promises to be much of the same.
Estate taxes: In 2012, the basic
threshold amount—the amount you
can own before your estate is subject
to estate taxes—is $5.12 million.
Most married couples who both die
in 2012 can pass a combined estate
worth approximately $10 million
free of federal estate taxes through a
portability provision. In 2013, the
threshold amount drops to $1 million
and portability between spouses ends,
unless Congress makes changes.
Income and capital gains taxes:
Rates remain the same for individual
taxpayers in 2012.
Charitable IRA rollover: As of
April, the charitable IRA rollover has
not been extended by Congress.
DONOR ADVISED FUND
SUPPORT PENN STATE
as securities or real estate, and other
resources to a fund that is invested
and administered on your behalf by
the University’s partners, investment
firm Kaspick & Company and DAF
technology and services provider
Crown Philanthropic Solutions, LLC.
An account can be established
with a gift of $25,000, and it can be
increased with additional contributions
of $1,000 or more. You may choose
to have your gift(s) invested in one of
eight investment options, much like
mutual funds, that reflect different
growth and income strategies.
This fund offers an important
alternative to other approaches to
charitable giving. Gifts to the fund
can be made when they will be most
financially advantageous for you,
and the fund then provides you
Act on this giving opportunity during
these times of extremely low interest
rates. This is the most tax-efficient
time to implement this strategy into
your plans.
Ultimately transfer property to loved
ones at minimal tax cost.
Your professional advisor can help you
decide if a lead trust is an effective way for
you to support Penn State programs and
meet your financial goals.
“The Pennsylvania State University
Charitable Gift Fund was created to
help generous individuals and their
families manage and simplify their
philanthropic activities,” says
Rodney P. Kirsch, senior vice
president for development and alumni
relations. “This launch comes after
years of research and preparation, and
we are proud to be offering our alumni
and friends one of the most innovative
approaches to giving available today.”
Through this fund, you can make
gifts of cash, appreciated assets such
How It WorksThis trust pays Penn State an income
for a certain length of time. When the
term is up, the remaining trust assets
go to your family or other beneficiaries
you select.
Is a Lead Trust Right for You?Good candidates for a charitable lead
trust want to:
Forgo access to an asset, without
depriving heirs of it later on.
Without Giving Up Assets for Your HeirsPreserve Family Wealth with a Charitable Lead Trust
The Pennsylvania State University Charitable Gift Fund is a donor advised fund that allows Penn State donors to invest their charitable dollars and direct contributions to both the University and other nonprofit organizations.
Do you want to benefit from the tax savings that result from supporting Penn State, yet you don’t want to give up any assets that you want your heirs to receive someday? You can have it both ways—with a charitable lead trust. Plus, the current low interest rates make this giving option more attractive than ever!
Remembering Penn State
3
with tremendous flexibility in
the timing and targeting of your
charitable support.
Gifts can be counted as tax
deductible as soon as they are
committed to the fund, allowing you
to manage the impact of significant
tax events.
You may allocate your gift to the
program or charity of your choice
at the time that it is given, or you
may wait to direct your giving
until you have further defined your
philanthropic priorities. At least
50 percent of the distributions from
your account must ultimately be gifted
to Penn State, and the remainder
can go to the University or to other
qualified charitable organizations.
ESTATE PLANNING TIPS TO HELP YOU ACHIEVE YOUR CHARITABLE GOALS
The information in this publication is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results.
© Penn State University and The Stelter Company
Remembering Penn State
2
How You BenefitThe gift or estate tax savings from a lead
trust are based on the current value of the
income paid to Penn State over the trust
term. The greater the trust’s payment
amount or the longer the trust term—or
both—the greater the value of the gift to
Penn State and hence the lower the overall
taxes to you or your estate.
The size of your trust and its term are
up to you.
Example: For each $1 million you leave to
your heirs over the threshold amount—the
threshold in 2012 is $5.12 million, but it
drops to only $1 million in 2013—estate
taxes will consume up to $350,000 and your
heirs will get $650,000 (assuming your estate
is subject to estate taxes at your death).
With a lead trust, you can transfer
$1 million to your heirs after your death,
leaving only $22,700* subject to estate tax,
instead of $1 million.
To accomplish this, you create a $1 million
lead trust from your estate that will pay Penn
State $65,000 annually for 17 years. When
the trust term ends, the remaining trust assets
will go to your named beneficiaries.
Want to Learn More?The lead trust is a good giving option
for many of our alumni and friends—
especially during these tough economic
times. For more information about how
this gift could work for you, contact Mike
Degenhart at 888-800-9170.
* Based on annual payments and a 1.4 percent charitable midterm federal rate; this rate changes monthly.
Remembering Penn State
4
Penn State Launches New
Two FREE GuidesReturn the enclosed reply card today to receive two FREE brochures to help with your gift planning. Provide More for Your Heirs and Cut Taxes guides you through the basics of a charitable lead trust, and The 3 Easiest Ways to Leave Your Legacy outlines the simple process of making gifts to Penn State through beneficiary designations. We’d also like to send you My Will Planning Guide, a useful 23-page booklet to help you collect and organize important information. The guide is also available in CD format. Just check the boxes on the reply card and we’ll send yours today!
Paul and Eleanor ChaddertonWhy We Chose a CLT
As longtime supporters of Penn State and parents of two Penn State graduates, Paul and Eleanor Chadderton feel great loyalty to the University. As business owners and active members of the Sharon community, Paul says they “have seen firsthand the important role the University plays in our area.” When the couple decided to extend their support with a gift to Penn State Shenango, they were thrilled to learn about a charitable lead trust (CLT), a gift that just “made sense to me,” Paul recalls. They appreciated the flexibility offered by a CLT. “It’s going to support our local campus for a few years and then whatever is left, our kids will still get something out of that,” Paul says. The Chaddertons’ CLT, created through a gift of $500,000, is providing a $20,000 annuity to Penn State Shenango for ten years, to be used at the chancellor’s discretion to meet pressing campus needs. The trust’s first distribution provided $15,000 in scholarship support to students attending Penn State Shenango. The remaining $5,000 partially funded a spring break service trip in March 2011, when fourteen students traveled to Peru to help indigenous families replace their traditional open-pit fire kitchens with clean-burning stoves and chimneys. The couple experiences great satisfaction knowing that their gifts support deserving students as well as the local community. “It makes you feel really good to know that you are helping somebody,” Paul says. “We’ve kept track of some of these kids [after graduation], and a lot of the students we’ve sponsored have really excelled. These things make us want to do a little bit more and a little bit more.”
To learn more about this unique
giving opportunity, please contact
Mike Degenhart at 888-800-9170.
DONOR ADVISED FUND
SUPPORT PENN STATE
as securities or real estate, and other
resources to a fund that is invested
and administered on your behalf by
the University’s partners, investment
firm Kaspick & Company and DAF
technology and services provider
Crown Philanthropic Solutions, LLC.
An account can be established
with a gift of $25,000, and it can be
increased with additional contributions
of $1,000 or more. You may choose
to have your gift(s) invested in one of
eight investment options, much like
mutual funds, that reflect different
growth and income strategies.
This fund offers an important
alternative to other approaches to
charitable giving. Gifts to the fund
can be made when they will be most
financially advantageous for you,
and the fund then provides you
Act on this giving opportunity during
these times of extremely low interest
rates. This is the most tax-efficient
time to implement this strategy into
your plans.
Ultimately transfer property to loved
ones at minimal tax cost.
Your professional advisor can help you
decide if a lead trust is an effective way for
you to support Penn State programs and
meet your financial goals.
“The Pennsylvania State University
Charitable Gift Fund was created to
help generous individuals and their
families manage and simplify their
philanthropic activities,” says
Rodney P. Kirsch, senior vice
president for development and alumni
relations. “This launch comes after
years of research and preparation, and
we are proud to be offering our alumni
and friends one of the most innovative
approaches to giving available today.”
Through this fund, you can make
gifts of cash, appreciated assets such
How It WorksThis trust pays Penn State an income
for a certain length of time. When the
term is up, the remaining trust assets
go to your family or other beneficiaries
you select.
Is a Lead Trust Right for You?Good candidates for a charitable lead
trust want to:
Forgo access to an asset, without
depriving heirs of it later on.
Without Giving Up Assets for Your HeirsPreserve Family Wealth with a Charitable Lead Trust
The Pennsylvania State University Charitable Gift Fund is a donor advised fund that allows Penn State donors to invest their charitable dollars and direct contributions to both the University and other nonprofit organizations.
Do you want to benefit from the tax savings that result from supporting Penn State, yet you don’t want to give up any assets that you want your heirs to receive someday? You can have it both ways—with a charitable lead trust. Plus, the current low interest rates make this giving option more attractive than ever!
Remembering Penn State
3
with tremendous flexibility in
the timing and targeting of your
charitable support.
Gifts can be counted as tax
deductible as soon as they are
committed to the fund, allowing you
to manage the impact of significant
tax events.
You may allocate your gift to the
program or charity of your choice
at the time that it is given, or you
may wait to direct your giving
until you have further defined your
philanthropic priorities. At least
50 percent of the distributions from
your account must ultimately be gifted
to Penn State, and the remainder
can go to the University or to other
qualified charitable organizations.
ESTATE PLANNING TIPS TO HELP YOU ACHIEVE YOUR CHARITABLE GOALS
The information in this publication is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results.
© Penn State University and The Stelter Company
Remembering Penn State
2
How You BenefitThe gift or estate tax savings from a lead
trust are based on the current value of the
income paid to Penn State over the trust
term. The greater the trust’s payment
amount or the longer the trust term—or
both—the greater the value of the gift to
Penn State and hence the lower the overall
taxes to you or your estate.
The size of your trust and its term are
up to you.
Example: For each $1 million you leave to
your heirs over the threshold amount—the
threshold in 2012 is $5.12 million, but it
drops to only $1 million in 2013—estate
taxes will consume up to $350,000 and your
heirs will get $650,000 (assuming your estate
is subject to estate taxes at your death).
With a lead trust, you can transfer
$1 million to your heirs after your death,
leaving only $22,700* subject to estate tax,
instead of $1 million.
To accomplish this, you create a $1 million
lead trust from your estate that will pay Penn
State $65,000 annually for 17 years. When
the trust term ends, the remaining trust assets
will go to your named beneficiaries.
Want to Learn More?The lead trust is a good giving option
for many of our alumni and friends—
especially during these tough economic
times. For more information about how
this gift could work for you, contact Mike
Degenhart at 888-800-9170.
* Based on annual payments and a 1.4 percent charitable midterm federal rate; this rate changes monthly.
Remembering Penn State
4
Penn State Launches New
Two FREE GuidesReturn the enclosed reply card today to receive two FREE brochures to help with your gift planning. Provide More for Your Heirs and Cut Taxes guides you through the basics of a charitable lead trust, and The 3 Easiest Ways to Leave Your Legacy outlines the simple process of making gifts to Penn State through beneficiary designations. We’d also like to send you My Will Planning Guide, a useful 23-page booklet to help you collect and organize important information. The guide is also available in CD format. Just check the boxes on the reply card and we’ll send yours today!
Paul and Eleanor ChaddertonWhy We Chose a CLT
As longtime supporters of Penn State and parents of two Penn State graduates, Paul and Eleanor Chadderton feel great loyalty to the University. As business owners and active members of the Sharon community, Paul says they “have seen firsthand the important role the University plays in our area.” When the couple decided to extend their support with a gift to Penn State Shenango, they were thrilled to learn about a charitable lead trust (CLT), a gift that just “made sense to me,” Paul recalls. They appreciated the flexibility offered by a CLT. “It’s going to support our local campus for a few years and then whatever is left, our kids will still get something out of that,” Paul says. The Chaddertons’ CLT, created through a gift of $500,000, is providing a $20,000 annuity to Penn State Shenango for ten years, to be used at the chancellor’s discretion to meet pressing campus needs. The trust’s first distribution provided $15,000 in scholarship support to students attending Penn State Shenango. The remaining $5,000 partially funded a spring break service trip in March 2011, when fourteen students traveled to Peru to help indigenous families replace their traditional open-pit fire kitchens with clean-burning stoves and chimneys. The couple experiences great satisfaction knowing that their gifts support deserving students as well as the local community. “It makes you feel really good to know that you are helping somebody,” Paul says. “We’ve kept track of some of these kids [after graduation], and a lot of the students we’ve sponsored have really excelled. These things make us want to do a little bit more and a little bit more.”
To learn more about this unique
giving opportunity, please contact
Mike Degenhart at 888-800-9170.
DONOR ADVISED FUND
SUPPORT PENN STATE
as securities or real estate, and other
resources to a fund that is invested
and administered on your behalf by
the University’s partners, investment
firm Kaspick & Company and DAF
technology and services provider
Crown Philanthropic Solutions, LLC.
An account can be established
with a gift of $25,000, and it can be
increased with additional contributions
of $1,000 or more. You may choose
to have your gift(s) invested in one of
eight investment options, much like
mutual funds, that reflect different
growth and income strategies.
This fund offers an important
alternative to other approaches to
charitable giving. Gifts to the fund
can be made when they will be most
financially advantageous for you,
and the fund then provides you
Act on this giving opportunity during
these times of extremely low interest
rates. This is the most tax-efficient
time to implement this strategy into
your plans.
Ultimately transfer property to loved
ones at minimal tax cost.
Your professional advisor can help you
decide if a lead trust is an effective way for
you to support Penn State programs and
meet your financial goals.
“The Pennsylvania State University
Charitable Gift Fund was created to
help generous individuals and their
families manage and simplify their
philanthropic activities,” says
Rodney P. Kirsch, senior vice
president for development and alumni
relations. “This launch comes after
years of research and preparation, and
we are proud to be offering our alumni
and friends one of the most innovative
approaches to giving available today.”
Through this fund, you can make
gifts of cash, appreciated assets such
How It WorksThis trust pays Penn State an income
for a certain length of time. When the
term is up, the remaining trust assets
go to your family or other beneficiaries
you select.
Is a Lead Trust Right for You?Good candidates for a charitable lead
trust want to:
Forgo access to an asset, without
depriving heirs of it later on.
Without Giving Up Assets for Your HeirsPreserve Family Wealth with a Charitable Lead Trust
The Pennsylvania State University Charitable Gift Fund is a donor advised fund that allows Penn State donors to invest their charitable dollars and direct contributions to both the University and other nonprofit organizations.
Do you want to benefit from the tax savings that result from supporting Penn State, yet you don’t want to give up any assets that you want your heirs to receive someday? You can have it both ways—with a charitable lead trust. Plus, the current low interest rates make this giving option more attractive than ever!
Remembering Penn State
3
with tremendous flexibility in
the timing and targeting of your
charitable support.
Gifts can be counted as tax
deductible as soon as they are
committed to the fund, allowing you
to manage the impact of significant
tax events.
You may allocate your gift to the
program or charity of your choice
at the time that it is given, or you
may wait to direct your giving
until you have further defined your
philanthropic priorities. At least
50 percent of the distributions from
your account must ultimately be gifted
to Penn State, and the remainder
can go to the University or to other
qualified charitable organizations.
ESTATE PLANNING TIPS TO HELP YOU ACHIEVE YOUR CHARITABLE GOALS
The information in this publication is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results.
© Penn State University and The Stelter Company
Remembering Penn State
2
How You BenefitThe gift or estate tax savings from a lead
trust are based on the current value of the
income paid to Penn State over the trust
term. The greater the trust’s payment
amount or the longer the trust term—or
both—the greater the value of the gift to
Penn State and hence the lower the overall
taxes to you or your estate.
The size of your trust and its term are
up to you.
Example: For each $1 million you leave to
your heirs over the threshold amount—the
threshold in 2012 is $5.12 million, but it
drops to only $1 million in 2013—estate
taxes will consume up to $350,000 and your
heirs will get $650,000 (assuming your estate
is subject to estate taxes at your death).
With a lead trust, you can transfer
$1 million to your heirs after your death,
leaving only $22,700* subject to estate tax,
instead of $1 million.
To accomplish this, you create a $1 million
lead trust from your estate that will pay Penn
State $65,000 annually for 17 years. When
the trust term ends, the remaining trust assets
will go to your named beneficiaries.
Want to Learn More?The lead trust is a good giving option
for many of our alumni and friends—
especially during these tough economic
times. For more information about how
this gift could work for you, contact Mike
Degenhart at 888-800-9170.
* Based on annual payments and a 1.4 percent charitable midterm federal rate; this rate changes monthly.
Remembering Penn State
4
Penn State Launches New
Two FREE GuidesReturn the enclosed reply card today to receive two FREE brochures to help with your gift planning. Provide More for Your Heirs and Cut Taxes guides you through the basics of a charitable lead trust, and The 3 Easiest Ways to Leave Your Legacy outlines the simple process of making gifts to Penn State through beneficiary designations. We’d also like to send you My Will Planning Guide, a useful 23-page booklet to help you collect and organize important information. The guide is also available in CD format. Just check the boxes on the reply card and we’ll send yours today!
Paul and Eleanor ChaddertonWhy We Chose a CLT
As longtime supporters of Penn State and parents of two Penn State graduates, Paul and Eleanor Chadderton feel great loyalty to the University. As business owners and active members of the Sharon community, Paul says they “have seen firsthand the important role the University plays in our area.” When the couple decided to extend their support with a gift to Penn State Shenango, they were thrilled to learn about a charitable lead trust (CLT), a gift that just “made sense to me,” Paul recalls. They appreciated the flexibility offered by a CLT. “It’s going to support our local campus for a few years and then whatever is left, our kids will still get something out of that,” Paul says. The Chaddertons’ CLT, created through a gift of $500,000, is providing a $20,000 annuity to Penn State Shenango for ten years, to be used at the chancellor’s discretion to meet pressing campus needs. The trust’s first distribution provided $15,000 in scholarship support to students attending Penn State Shenango. The remaining $5,000 partially funded a spring break service trip in March 2011, when fourteen students traveled to Peru to help indigenous families replace their traditional open-pit fire kitchens with clean-burning stoves and chimneys. The couple experiences great satisfaction knowing that their gifts support deserving students as well as the local community. “It makes you feel really good to know that you are helping somebody,” Paul says. “We’ve kept track of some of these kids [after graduation], and a lot of the students we’ve sponsored have really excelled. These things make us want to do a little bit more and a little bit more.”
To learn more about this unique
giving opportunity, please contact
Mike Degenhart at 888-800-9170.
Leaving Something BehindAn Alumnus’ Estate Gift Provides for the Future
“He came here as a refugee when he
was eleven years old and didn’t speak
English,” says his wife, Catherine
O’Donnell Pazemenas. “But he worked
very hard.” And Penn State offered Vytas
an opportunity to forge an exciting
future. “He really appreciated the
education he got there,” Cathy recalls.
“He thought it was an all-around great
engineering background.”
Inspired by the quality of the
instruction, facilities, and research efforts
he saw during his visits, Vytas hoped to
deepen his relationship with Penn State.
“Education was very important to his
family and to him,” Cathy says. “And he
thought that any other students would be
very, very fortunate to get the same kind
of education that he did.”
Sadly, Vytas passed away in 2009 after
a sudden, brief illness. But in the months
before his death, he took steps to ensure
that he would have an impact on Penn
State students in the future: He and Cathy
established a bequest to Penn State’s
Department of Electrical Engineering
Remembering Penn State
6
contract engineering and manufacturing
firm specializing in the development of
medical devices. In recognition of his
professional achievements, Vytas was
posthumously honored with the College
of Engineering Outstanding Engineering
Alumni Award in 2010.
“Vytas loved being an engineer,”
Cathy recalls, “and he liked interacting
with other engineers.” That enthusiasm
for his field was part of what pleased him
so much about reconnecting with Penn
State, as he explored the
research and teaching
in his old department.
As Cathy notes, “he
found it very exciting
what the faculty and
students were doing,
the course offerings,
and their plans for the future.” Thanks
to his and Cathy’s gift, Vytas will leave a
lasting mark on the department he loved.
Penn State Office of Gift Planning
through their living trust. Cathy later
worked with the Office of Gift Planning
to structure a gift that will establish
a named department head position,
a faculty chair, or other endowment,
depending on the department’s needs
and the funds available when the bequest
is ultimately realized.
“Regardless of its final form,
the Pazemenas’ gift will give the
department crucial support to keep our
research and teaching moving forward,”
says College of Engineering Dean
David Wormley, who remembers Vytas
fondly as a consummate professional
with a vibrant intellect.
In a career built upon his technical
abilities and entrepreneurial talents—
he’d started his first business, repairing
televisions, at age fifteen—Vytas held
various engineering and leadership
positions with established companies,
and ultimately founded his own
company in Irvine, California. Aubrey
Group, named after the hero in Patrick
O’Brian’s series of nautical novels, is a
Michael J. DegenhartExecutive Director
Brian J. McCullough, Esq.Gift Planning Officer
Larry J. MrozGift Planning Officer
Thomas L. ParrishAssociate Gift Planning Officer
Patricia L. Roenigk, Esq.Director, Individual Gift Planning
Jeanne M. SalladeAssistant Director
Terri L. AssaelGift Planning Assistant
Office of Gift Planning214 The 103 Building University Park, PA 16802
814-865-0872 Toll-free: [email protected]
www.giftplanning.psu.edu
Gift Planning Newsletter
A SIMPLE WAYTo Leave Your Mark on the World
Remembering Penn State
5
Gift Planning NewsletterSPRING 2012
When Vytas Pazemenas first came to Penn State as a freshman in 1957, just a few years after his family fled the Soviet occupation of Lithuania, he hoped that a college degree would be a path to a better life in the United States. By the time he returned in 2008 as the featured speaker in the College of Engineering’s Gaelen Entrepreneurship Speaker Series, he had parlayed his degree in electrical engineering into an impressive career capped by the founding of his own successful firm.
Inside This Issue: PAGE 2: An exciting new gift option PAGE 3: A unique gift that helps you to preserve family wealth PAGE 5: A simple change that helps Penn State students PAGE 6: Remember Penn State in your will
Vytas Pazemenas
Leaving Something BehindAn Alumnus’ Estate Gift Provides for the Future
How Will 2012 and 2013 Tax Law Changes Affect You?Continued from Page 1
Continued on Page 6
You can easily modify the beneficiaries
of the following assets at any time to
meet your changing needs:
IRAs and retirement plans
Life insurance policies
Insurance annuities
Changing BeneficiariesTo name or change a beneficiary,
contact the administrator of the IRA
or retirement plan, or your insurance
company, for a change-of-beneficiary
form. Decide what percentage of the
plan’s value you would like us to
receive and name Penn State, along with
the stated percentage, on the beneficiary
form. Return the form to your plan
administrator or insurance company.
Changing beneficiaries is also
tax-smart. If you name loved ones as
beneficiaries of these assets, federal
income taxes can erode up to 35
percent of the assets. As a nonprofit
organization, Penn State bypasses any
taxes and receives the full amount.
Naming Penn State as the beneficiary of certain assets is a simple way to make a lasting impact.
Holding Depreciated Securities?In response to questions from our loyal alumni and friends, here are the details about making a gift using depreciated securities.
If you have stocks that have
experienced significant declines and
are now worth less than what you paid
for them, consider using those stocks
to make a gift to Penn State.
For maximum tax savings, sell the
stock, take any allowable loss, and
then donate the cash proceeds to us.
This way, you’ll obtain a charitable
deduction for the cash gift, and you
can offset the losses against any gains
this year. If your overall losses exceed
your gains, you can deduct up to
$3,000 of the excess loss from
ordinary income—and carry over
excess losses to future years.
To learn more, contact the Office
of Gift Planning at 888-800-9170.
YOU’RE INVITED! The Atherton SocietyWhen you support the future of Penn State through a planned
gift, you join a group of alumni and friends who share a love
and vision for our University and, more important, our students.
This inspirational group is called The Atherton Society, named
for George W. Atherton, Penn State’s seventh president, and
his wife, Frances. Their efforts laid the groundwork for today’s
achievements, much like your gifts do today.
Join UsMembership is offered to individuals who have included Penn
State in their estate plans or as a beneficiary of a planned gift.
Your bequest commitment can help us reach the goals of For
the Future: The Campaign for Penn State Students. Sharing
your intentions with us allows Penn State to ensure your wishes
are fulfilled in the future.
Remember Penn State in Your WillA gift to Penn State in your will or living trust, known as a bequest, is a simple way to extend your support beyond your lifetime. A bequest allows you to make a significant difference without parting with any assets today. You can leave us a specific asset, a specific dollar amount, or a percentage of your estate. And you can change your mind at any time should your circumstances change. Best of all, this simple and straightforward gift can be added to your will in as little as one sentence. Contact us today to learn more.
If you updated your estate plans in 2011, you’re in luck—this year promises to be much of the same.
Estate taxes: In 2012, the basic
threshold amount—the amount you
can own before your estate is subject
to estate taxes—is $5.12 million.
Most married couples who both die
in 2012 can pass a combined estate
worth approximately $10 million
free of federal estate taxes through a
portability provision. In 2013, the
threshold amount drops to $1 million
and portability between spouses ends,
unless Congress makes changes.
Income and capital gains taxes:
Rates remain the same for individual
taxpayers in 2012.
Charitable IRA rollover: As of
April, the charitable IRA rollover has
not been extended by Congress.
Leaving Something BehindAn Alumnus’ Estate Gift Provides for the Future
“He came here as a refugee when he
was eleven years old and didn’t speak
English,” says his wife, Catherine
O’Donnell Pazemenas. “But he worked
very hard.” And Penn State offered Vytas
an opportunity to forge an exciting
future. “He really appreciated the
education he got there,” Cathy recalls.
“He thought it was an all-around great
engineering background.”
Inspired by the quality of the
instruction, facilities, and research efforts
he saw during his visits, Vytas hoped to
deepen his relationship with Penn State.
“Education was very important to his
family and to him,” Cathy says. “And he
thought that any other students would be
very, very fortunate to get the same kind
of education that he did.”
Sadly, Vytas passed away in 2009 after
a sudden, brief illness. But in the months
before his death, he took steps to ensure
that he would have an impact on Penn
State students in the future: He and Cathy
established a bequest to Penn State’s
Department of Electrical Engineering
Remembering Penn State
6
contract engineering and manufacturing
firm specializing in the development of
medical devices. In recognition of his
professional achievements, Vytas was
posthumously honored with the College
of Engineering Outstanding Engineering
Alumni Award in 2010.
“Vytas loved being an engineer,”
Cathy recalls, “and he liked interacting
with other engineers.” That enthusiasm
for his field was part of what pleased him
so much about reconnecting with Penn
State, as he explored the
research and teaching
in his old department.
As Cathy notes, “he
found it very exciting
what the faculty and
students were doing,
the course offerings,
and their plans for the future.” Thanks
to his and Cathy’s gift, Vytas will leave a
lasting mark on the department he loved.
Penn State Office of Gift Planning
through their living trust. Cathy later
worked with the Office of Gift Planning
to structure a gift that will establish
a named department head position,
a faculty chair, or other endowment,
depending on the department’s needs
and the funds available when the bequest
is ultimately realized.
“Regardless of its final form,
the Pazemenas’ gift will give the
department crucial support to keep our
research and teaching moving forward,”
says College of Engineering Dean
David Wormley, who remembers Vytas
fondly as a consummate professional
with a vibrant intellect.
In a career built upon his technical
abilities and entrepreneurial talents—
he’d started his first business, repairing
televisions, at age fifteen—Vytas held
various engineering and leadership
positions with established companies,
and ultimately founded his own
company in Irvine, California. Aubrey
Group, named after the hero in Patrick
O’Brian’s series of nautical novels, is a
Michael J. DegenhartExecutive Director
Brian J. McCullough, Esq.Gift Planning Officer
Larry J. MrozGift Planning Officer
Thomas L. ParrishAssociate Gift Planning Officer
Patricia L. Roenigk, Esq.Director, Individual Gift Planning
Jeanne M. SalladeAssistant Director
Terri L. AssaelGift Planning Assistant
Office of Gift Planning214 The 103 Building University Park, PA 16802
814-865-0872 Toll-free: [email protected]
www.giftplanning.psu.edu
Gift Planning Newsletter
A SIMPLE WAYTo Leave Your Mark on the World
Remembering Penn State
5
Gift Planning NewsletterSPRING 2012
When Vytas Pazemenas first came to Penn State as a freshman in 1957, just a few years after his family fled the Soviet occupation of Lithuania, he hoped that a college degree would be a path to a better life in the United States. By the time he returned in 2008 as the featured speaker in the College of Engineering’s Gaelen Entrepreneurship Speaker Series, he had parlayed his degree in electrical engineering into an impressive career capped by the founding of his own successful firm.
Inside This Issue: PAGE 2: An exciting new gift option PAGE 3: A unique gift that helps you to preserve family wealth PAGE 5: A simple change that helps Penn State students PAGE 6: Remember Penn State in your will
Vytas Pazemenas
Leaving Something BehindAn Alumnus’ Estate Gift Provides for the Future
How Will 2012 and 2013 Tax Law Changes Affect You?Continued from Page 1
Continued on Page 6
You can easily modify the beneficiaries
of the following assets at any time to
meet your changing needs:
IRAs and retirement plans
Life insurance policies
Insurance annuities
Changing BeneficiariesTo name or change a beneficiary,
contact the administrator of the IRA
or retirement plan, or your insurance
company, for a change-of-beneficiary
form. Decide what percentage of the
plan’s value you would like us to
receive and name Penn State, along with
the stated percentage, on the beneficiary
form. Return the form to your plan
administrator or insurance company.
Changing beneficiaries is also
tax-smart. If you name loved ones as
beneficiaries of these assets, federal
income taxes can erode up to 35
percent of the assets. As a nonprofit
organization, Penn State bypasses any
taxes and receives the full amount.
Naming Penn State as the beneficiary of certain assets is a simple way to make a lasting impact.
Holding Depreciated Securities?In response to questions from our loyal alumni and friends, here are the details about making a gift using depreciated securities.
If you have stocks that have
experienced significant declines and
are now worth less than what you paid
for them, consider using those stocks
to make a gift to Penn State.
For maximum tax savings, sell the
stock, take any allowable loss, and
then donate the cash proceeds to us.
This way, you’ll obtain a charitable
deduction for the cash gift, and you
can offset the losses against any gains
this year. If your overall losses exceed
your gains, you can deduct up to
$3,000 of the excess loss from
ordinary income—and carry over
excess losses to future years.
To learn more, contact the Office
of Gift Planning at 888-800-9170.
YOU’RE INVITED! The Atherton SocietyWhen you support the future of Penn State through a planned
gift, you join a group of alumni and friends who share a love
and vision for our University and, more important, our students.
This inspirational group is called The Atherton Society, named
for George W. Atherton, Penn State’s seventh president, and
his wife, Frances. Their efforts laid the groundwork for today’s
achievements, much like your gifts do today.
Join UsMembership is offered to individuals who have included Penn
State in their estate plans or as a beneficiary of a planned gift.
Your bequest commitment can help us reach the goals of For
the Future: The Campaign for Penn State Students. Sharing
your intentions with us allows Penn State to ensure your wishes
are fulfilled in the future.
Remember Penn State in Your WillA gift to Penn State in your will or living trust, known as a bequest, is a simple way to extend your support beyond your lifetime. A bequest allows you to make a significant difference without parting with any assets today. You can leave us a specific asset, a specific dollar amount, or a percentage of your estate. And you can change your mind at any time should your circumstances change. Best of all, this simple and straightforward gift can be added to your will in as little as one sentence. Contact us today to learn more.
If you updated your estate plans in 2011, you’re in luck—this year promises to be much of the same.
Estate taxes: In 2012, the basic
threshold amount—the amount you
can own before your estate is subject
to estate taxes—is $5.12 million.
Most married couples who both die
in 2012 can pass a combined estate
worth approximately $10 million
free of federal estate taxes through a
portability provision. In 2013, the
threshold amount drops to $1 million
and portability between spouses ends,
unless Congress makes changes.
Income and capital gains taxes:
Rates remain the same for individual
taxpayers in 2012.
Charitable IRA rollover: As of
April, the charitable IRA rollover has
not been extended by Congress.