continued on page 4 Bill and Sonya Carpenter have led a rich and full life together. Bill is a Korean War veteran and his 38-year career with Shell Oil Company took the family all over the United States—to Houston, New York, Los Angeles, San Francisco, St. Louis, New Orleans—as well as a stay in Saudi Arabia. Bill retired in 1991, allowing him and Sonya to pursue their interests, including travel, golf, fishing and bridge. Bill and Sonya are longtime donors to Baylor College of Medicine. They have always targeted their philanthropy to research. As Bill put it recently, “Research is paving the way to the future. I am sitting here because of research and the care I received at Baylor.” In 1986, Bill was diagnosed with a liver ailment later revealed to be hepatitis C virus (HCV), a chronic condition that can eventually destroy the liver. After years of procedures, treatments and anxious waiting, Bill was given a liver transplant in 2007. With the help of newer, more effective medications, he has been cured of HCV. He credits Baylor medical staff with saving his life. Thankfulness and appreciation fuel the Carpenters’ philanthropy. Baylor focuses on translating the discoveries of the laboratory to new treatments, which benefit patients everywhere. Bill and Sonya Carpenter Upcoming Jaworski Society Event Friday, October 7, 2016 Presentation by Brendan Lee, M.D., Ph.D. Chair of Department of Molecular and Human Genetics Junior League of Houston, 8 a.m.-9:30 a.m. Bill and Sonya Carpenter: smart philanthropy FALL 2016 Visit our website at www.givingyourway.org/bcm
Transcript
continued on page 4
Bill and Sonya Carpenter have led a rich and full life together. Bill is a Korean War veteran and his 38-year career with Shell Oil Company took the family all over the United States—to Houston, New York, Los Angeles, San Francisco, St. Louis, New Orleans—as well as a stay in Saudi Arabia. Bill retired in 1991, allowing him and Sonya to pursue their interests, including travel, golf, fishing and bridge.
Bill and Sonya are longtime donors to Baylor College of Medicine. They have always targeted their philanthropy to research. As Bill put it recently, “Research is paving the way to the future. I am sitting here because of research and the care I received at Baylor.” In 1986, Bill was diagnosed with a liver ailment later revealed to be hepatitis C virus (HCV), a chronic condition that can eventually destroy the liver. After years of procedures, treatments and anxious waiting, Bill was given a liver transplant in 2007. With the help of newer, more effective medications, he has been cured of HCV. He credits Baylor medical staff with saving his life.
Thankfulness and appreciation fuel the Carpenters’ philanthropy. Baylor focuses on translating the discoveries of the laboratory to new treatments, which benefit patients everywhere.
Bill and Sonya Carpenter
Upcoming Jaworski Society EventFriday, October 7, 2016
Presentation by Brendan Lee, M.D., Ph.D.
Chair of Department of Molecular and Human Genetics
Junior League of Houston, 8 a.m.-9:30 a.m.
Bill and Sonya Carpenter: smart philanthropy
FALL 2016
Visit our website at www.givingyourway.org/bcm
Retirement & Estate PlanningGifts that help you and Baylor College of Medicine
There are countless compelling reasons that motivate supporters just like you to consider adopting one or more charitable giving strategies to support Baylor College of Medicine. This issue of Creating Legacies looks at smart gift options that can be easy to overlook, whether you are retired, about to retire or looking further down the road.
Make a gift, secure income for lifeSome gifts support Baylor College of Medicine and provide lifetime supplementary retirement income to donors. Charitable gift annuities and charitable remainder trusts are gifts that make a difference while providing income for donors and/or their families.
A charitable gift annuity* is the simplest life income gift to set up and maintain. A gift annuity can be created with a smaller-sized gift than a charitable remainder trust. However, with a gift annuity, beneficiaries are limited to one or two people. By contrast, a charitable remainder trust can have more than two income beneficiaries. It also offers flexibility that can be essential to estate and tax planning.
With both gift options:• A current charitable deduction
may be available.• Income payments can begin
immediately or be deferred to a specific time in the future.
• Payments can be received by you, by someone else or by you and someone else.
ExamplE: Jean is a generous Baylor College of Medicine supporter. Now, at age 60, thinking about the future, she learns she can set up a charitable gift annuity that will provide income after she retires. She makes a gift of $25,000 and specifies that payments begin in 10 years. In exchange, she will receive annual payments of $1,675 that begin at age 70 and continue for the rest of her life. Her gift will qualify for an $8,161 charitable deduction this year.*
* Based on an AFR of 1.4%. Example for illustrative purposes only.
One gift, many happy returnsThe concept of “legacy” is filled with meaning. It can refer to everything you leave behind to benefit or guide those who will follow. Legacy gifts shape the future and make an impact for generations to come.
One of the most meaningful ways to leave a legacy is through an endowed gift. When a gift is made to an endowment fund (or when a gift is made to create an endowed fund), only a portion of the earnings from the fund are used to support BCM’s work. An endowed fund is designed to last in perpetuity, providing annual distributions year after year.
The significance of an endowed gift is that you can enjoy its impact today, knowing it will make a real difference for future generations. Today’s gift will provide ongoing returns to Baylor College of Medicine through the earnings on the fund.
Your PlanThoughtful planning provides a pathway for reaching your goals and makes it possible to reward heirs and remember Baylor College of Medicine in specific, meaningful and personally rewarding ways.
Steps you can takeAn up-to-date will or a living trust provides a critical foundation for your planning. Your team of financial and legal advisors can work with you to structure and monitor your will or trust and help you make adjustments when they are needed. As you plan, consider these additional ideas that may be factors in reaching your overall goals.
Retirement assets deserve special attention. When retirement assets are left to heirs in a will or trust, heirs must pay income tax on the assets when they are received. By
2
Attention iRA owneRSThere’s good news for IRA owners age 70½ or older! The IRA Charitable Rollover is a way to make a tax-free transfer directly from your IRA to Baylor College of Medicine that counts toward your required minimum distribution. Although there is no tax deduction, the distribution is excluded from your income for federal tax purposes—no tax is due! A gift up to $100,000 qualifies for this favorable tax treatment. Contact us (information on page 4) for details.
* Not available in all states
contrast, a charitable organization like Baylor College of Medicine pays no income tax on gifts of retirement assets. The full amount supports your interest in our work. If your goal is to provide for loved ones and make a gift to us, be sure you know the tax impact of the gift options available.
Appreciated property is another important asset to consider. When your heirs inherit appreciated property, they benefit from a step up in the basis. Happily, when they sell the property, they pay tax only on the appreciation that has occurred after the property is inherited. Given these tax facts, leaving appreciated property (stock or real estate) to heirs and retirement assets to charity can be an effective planning strategy.
Use your will or living trust to meet specific goals. There are many ways to make a gift in your will or living trust, whether the gift is a specific asset or property, a percentage of the estate or the residue of the estate after all other estate provisions have been satisfied.
The path forwardWe hope this issue shines a light on the often overlooked ways that personal philanthropy can impact your planning. Please contact us by phone or email, or use the enclosed reply card to request our free brochure Estate Planning Today—A Guide to a More Effective Plan. You can also request information about any gift ideas by emailing [email protected]. Thank you for considering Baylor College of Medicine in your planning.
The Jaworski Society
The Jaworski Society was created to honor those who have included Baylor in their estate plans. There are many ways to give, and choosing the right plan can have a major impact on you and your family. The Office of Philanthropy and Alumni Relations at Baylor is here to serve you and work with your team of financial professionals to help develop a strategic plan that is right for you. As a result, you and your family can experience the joy of leaving a legacy that will benefit generations to come.
Paul Klotman, MD, President, CEO and Executive Dean of Baylor College of Medicine, hosted members and trainees in the Texas Medical Center. He provided a summary of Baylor’s past five years.
Roger Zygmut talks with trainees at the event.
Alan Cramer, MD, and Major Bradshaw, MD, MS
Jenny erwin and wendell erwin, MDwilliam Haynes and Mary Colaco
3
Jaworski Society Luncheon—May 18, 2016
Kristi S. CooperVice President, Philanthropy and Alumni [email protected]
Contact UsBaylor College of MedicineOffice of Philanthropy and Alumni RelationsOne Baylor Plaza, MS: BCM 160Houston, TX 77030-3498
Be sure to consult your tax and financial advisors when considering any planned gift.
More information and complimentary brochures are also available from our website: www.givingyourway.org/bcm.
SAMPLe LAnGUAGe FoR CHARitABLe BeQUeStS“I give, devise and bequeath to Baylor College of Medicine located in Houston, Texas (Tax ID No. 74-1613878)a. the sum of $___________. b. _______% of my estate. c. _______% of the residue of
my estate. d. the following described
property _________.”
CARPenteRS continued from page 1
The Carpenters also are very adept in how they make donations. After a certain age, individuals are required to withdraw funds from their Individual Retirement Accounts (IRAs). These withdrawals are subject to full federal income taxes. A smart way to avoid such taxes and increase the impact of your contribution is to use an IRA rollover, in which funds are transferred directly to charities of your choice, up to $100,000 a year without the burden of taxes. Many retirees, such as the Carpenters, take advantage of this tax benefit.
“We have been truly blessed,” says Sonya. Through thoughtful philanthropy, they are truly making a difference.
4
Hello!
I am the new Director of Planned Giving, and although I haven’t been at Baylor long, I draw on 20 years of experience from academia and law. I have held similar positions at colleges and universities in the Boston area as well as Houston. It is an honor to help advance Baylor’s mission by facilitating the philanthropic investments of alumni and friends.
We hope you enjoy this issue of Creating Legacies. Throughout the newsletter, we introduce you to some of the philanthropists who are advancing medical education, research and care through estate gifts of all sizes. We also provide information related to estate or financial planning. These articles may spark some ideas you can raise with your own advisors.
As a new member of the Baylor College of Medicine community, I am moved by stories of how Baylor physicians have transformed the lives of patients, family members and friends. On a daily basis, I am surrounded by doctors whose cutting-edge research is contributing to new treatment options. I feel so lucky!
Whether we meet in the Texas Medical Center or on an out-of-town trip, I look forward to seeing many members of the Jaworski Society. Until then, be well and thank you for all you do for Baylor.
Best wishes,
Lydia LuzLydia Luz, J.D. Director of Planned Giving
