What are they and why do they matter?
Click on each question to see the answer.
- Are you producing a good product at work and adding value? Do you have good relationships with co-workers and supervisors?
- Have you taken advantage of all of the opportunities and benefits that your employer has to offer such as sick leave, pension match and disability policy? You would be amazed at how many people don’t.
- If your company does not provide these benefits, have you explored obtaining these policies/protection on your own?
- Is your employer financially stable? It doesn’t hurt to keep your options open.
- Are you networking?
- How long could you live on your savings if your paycheck stopped?
- Have you worked to keep your credit at its best?
- Do you have a good history of paying debts and monthly bills?
- Would you be able to get credit at a good interest rate from a reliable lender if needed?
- Do you have family or friends who would offer financial help in an emergency?
- Is your current debt level low and manageable if the unthinkable happens?
Your will or trust needs to be up-dated every three years. You can do this by reviewing the list below to see if any changes have taken place.
____ Are any of the people that you have named in your estate planning documents deceased?
____ Should you be including new people because of birth(s), adoption(s) or relationship changes?
____ Has there been a divorce or marriage?
____ Has your state recently enacted new laws that may affect your estate plan? If you have moved to a new state, you really need to have your estate plan reviewed according to the laws of that state. You will also need to take a fresh look at your power of attorney – both for finances and for health issues.
____ Do you want to change guardians, personal representatives, or trustees?
____ Have any of your children reached the age of 18? Do they need to have a trust created because of financial or emotional issues that leave them vulnerable?
____ Has there been a substantial increase or decrease in the value of your estate?
____ Did you win the lottery ------?
If you have already made a provision for MSOE with a planned gift, please tell us more about what you have done by either completing the form below or contacting Scott Weaver, JD at (414) 277-7148 or weaver@msoe.edu.
How often have we heard these words: "I really love MSOE and all it has done for me and my career, but I just don’t have a lot of money and there won't be much of an estate left when I pass. I just don't know how I can benefit MSOE." Here’s a simple—and better yet free—idea:
You have the ability to let people know that you were grateful to MSOE for all that they did for you, your family and your career. It is a nice way to remember you and honor your life. The obituary simply needs to contain a phrase asking that memorials or donations be made in your name and directed to MSOE. Including MSOE’s mailing address will also help to make donating easier and more convenient.
Many options are available for the use of memorial funds and we’d like to discuss them with you and your family. What a wonderful gift and what a nice last wish. It is done in your name and the giver feels good about giving the gift of education. Quite simply, could there be a better way to memorialize your life than by touching the future of countless students?
For details and specifics on this simple way to support MSOE please email or call director of planned giving Scott C. Weaver, JD, at (414) 277-7148.
Do I need a will or estate plan? Do I even have enough assets? What if I don’t want to hire an attorney—what can I do on my own?
If you do not have a simple will or estate plan, your assets will be settled by a local court via a process called: intestacy. Intestacy is when your assets are (hopefully) gathered by a relative or court appointed individual and the court determines a distribution scheme for your assets. The distribution of everything you have acquired is left to the whim of the court and the dictates of law. This means that your estate will incur fees at every step of the process and there will be a good deal of money being spent on these fees and avoidable taxes.
The second and most common method is to provide for an orderly distribution through an instrument known as a will. When you create a will you control how the assets will flow upon your death and to whom. A will enables you to determine who will inherit your property—whether it’s jewelry, or family heirlooms, antiques, any personal property. A will allows you to be as specific as you would like regarding the distribution process of your assets. This does include any real estate and cash/investment assets. A will creates an orderly transition of your property and this will cut down on expenses, fees and taxes. It also means that the process has the sanction of the court and should make for a relatively short process.
There are other more specific legal methods to transfer your assets at death. Concepts such as:
- Holding property jointly with another individual allows you and another person to each share property in some form with the property passing at death. This might be joint tenancy, tenancy by entirety, community property or tenancy in common.
- A simpler method is to form a contract for the asset. For example, you can have the proceeds from a life insurance contract, annuity or pension pass directly on to the beneficiary by law without having to go through any formal legal process.
- There are also a number of specific trust formations which can be used to accomplish a relatively simple transfer of wealth to a very complex distribution scheme designed to save taxes. A trust can help to control final distribution, manage fees and taxes and avoid probate if structured properly. Finally, trusts can also be either revocable which allows for changes to be made or irrevocable.
There are a lot of choices that can be made to make life easier for those who are left behind. May I suggest that you avail yourself of the information available to you and call Scott Weaver at (414) 277-7148 to discuss the options that you have. Why wait and let fate do the job. You can and should make your decisions today. We would love to be part of the process whether to plan the estate or to receive a portion of it. In either event, please call Scott today and get that process started.
Have you made your will yet? Is MSOE in it?
Your will reflects the time when it was created. Many people intend to update their wills but often fail to do so. You can always change your will by adding a codicil (an amendment), but how do you know when to change it? Click here to read more information about when and how to update your will.
- You want to name a different personal representative, trustee or guardian.
- Your estate has increased or decreased significantly.
- You've moved to another state.
- Your situation or a beneficiary’s situation has changed because of marriage, divorce, birth, adoption or death.
- Tax laws have changed.
- You want to include a charitable gift in your will.
- Step 1: Obtain a copy of your current will.
Step 2: Mark the necessary changes.
Step 3: Meet with your estate planning attorney.
Step 4: Discuss changes with us if they will affect Milwaukee School of Engineering
If you have additional questions on updating your will or are considering adding a gift to MSOE, please contact an estate planning attorney or Scott C. Weaver, JD, at (414) 277-7148 for more information.
Changes to the United States Tax Code, which affect millions of Americans, were implemented at the beginning of 2013. Many are wondering how and if the provisions will impact them, and how to make sense of these highly complicated laws and codes. Scott Weaver J.D., MSOE’s director of planned giving, is here to help when it comes to taking advantage of the new provisions. Click here to read his 2013 tax code highlights as well as some tips for how to make the most of them.
- The IRA charitable rollover is back for 2012 and 2013. Individuals age 70½ or older are once again eligible to transfer up to $100,000 directly from their IRAs directly to qualified charities, like MSOE, without having to pay income taxes on the money.
- Estate, gift and generation-skipping tax exemptions are retained. The new law permanently preserves the current individual gift, estate and generation-skipping tax to a unified $5 million exemption level. The new law also allows the executor of a deceased spouse's estate to transfer any unused exemption to the surviving spouse. This "portability" provision is permanent.
- Individual income tax rates increase for "high-income households." The new law permanently extends tax rates for taxpayers earning less than $400,000 a year and married couples earning less than $450,000. It increases the tax rate for high-income households earning more than that to 39.6 percent. The 2013 tax rates will be 10 percent, 15 percent, 25 percent, 28 percent, 33 percent, 35 percent and 39.6 percent.
In many cases, income taxes can be reduced when an individual makes donations to qualified charities.
- Capital gains tax rates increase for high-income households. The capital gains and dividend tax rates for high-income households will increase to 20 percent. There will be no capital gains tax for taxpayers whose income falls in tax brackets below 25 percent. The capital gains tax rate will be 15 percent for taxpayers whose income falls at or above the 25 percent tax bracket but below the new 39.6 percent rate.
- Itemized deductions and personal exemptions are restricted. The new law caps itemized deductions and phases out the personal exemption for individuals earning $250,000 or more and for married couples earning $300,000 or more.
- The payroll tax cut ends.
Those in the Development Office at MSOE are here to help simplify things for you. We can make your dream of helping MSOE through a gift as easy as picking up your phone and calling us. Let’s take advantage of these opportunities together.
If you would like to make a planned gift, please contact Scott Weaver, J.D. at (414) 277-7148 or at weaver@msoe.edu and start the conversation. His expertise will help you touch the future and impact the students of tomorrow forever.
Portions of the information contained above was provided by the The Stelter Company.
Fact or fiction: Planned giving requires the giver to have a lot of money and assets.
Many people think that to establish a planned gift, one must be wealthy. The truth is, planned giving can actually protect your assets and benefit your loved ones regardless of your income level. Click here to read more myths and common mis-conceptions surrounding planned gifts.
Myth: Planned giving requires the giver to have lots of money and assets.
The fact is, planned giving is nothing more than a technique that allows anyone, regardless of their means, the ability to plan for the distribution of their assets at the time of their death. The amount of money in the estate is immaterial. Rather than allowing the government to determine the distribution of your assets, you have made the determined decision to benefit those people and institutions who are most dear to you in a distribution plan that is meaningful to you.
Myth: Planned giving is complex, time-consuming and very expensive.
Most attorneys provide a free consultation to discuss your planned giving needs and then provide you with an estimate for their services.
The estate plan might be a simple will or a complex series of inter-locking trusts depending upon the level of sophistication that you choose to employ. In addition, there are collateral documents that are crucial to a well-executed plan such as Powers of Attorney and Powers of Health—all of which your attorney will be happy to explain to you.
Scott Weaver J.D., director of planned giving for MSOE, is more than happy to sit down with you and discuss the plan or plans that you have in mind. While he will not draft any documents, he may be able to help you distill your thoughts so that when you speak with your professional, you can get right to the heart of the matter.
Myth: Planned giving is just for older people.
It is just as important for young people to make sure that their estate plans are in place. If you are single, do you want the government to decide who gets your pension plan, life insurance, stock options, checking account, savings account and condo? Do you want the government to decide who will make health decisions for you or take care of your business affairs if you are incapacitated? Or, do you want to take charge and make sure that YOU make the decision? Likewise, if young couples don’t make decisions about health care, disposition of assets and custody of the children, then they are simply inviting the government to step in and make those decisions for them. Think of the cost and energy involved if your spouse needs to challenge the government.
You have worked so hard to get to where you are today, so consider taking a few minutes to make sure that it does not evaporate in an instant because of an untimely death.
Call Scott Weaver, J.D., today at (414) 277-7148 and he can discuss a number of options with you. What do you have to lose? It costs you nothing and might save you a lot of time, money and stress.
Recently we’ve received several questions about memorials, including how they work and why they’re important. Memorials are a great way to honor the memory of a friend, colleague, family member or professor. It’s easy to set up a memorial fund, and all the memorials we receive are used to support MSOE according to your wishes.
Sending a memorial gift in remembrance of a loved one or friend is a wonderful way to ensure their memory lives on. Your name will be printed in the "Memorial Gift" section of the annual Donor Report, and a note will be sent to the deceased person’s family indicating that you made a gift in their name. The best part? All of the money is used to support MSOE students and scholarships. What better way to honor a loved one’s memory?
In addition, you may want to consider setting up a memorial fund in your own name and having it included it in your obituary. Let your parents, spouses and children know that you valued the time that you spent at MSOE and cherish the friendships you made. Simply direct that memorial gifts be sent to MSOE in your name. Every dollar donated is used to support our scholarship efforts.
What better way to be remembered than by giving to others? It means so much to us and to the students who ultimately receive the scholarship assistance in your name. Please contact Scott Weaver, J.D. at (414) 277-7148 or at weaver@msoe.edu and start the conversation.
Back to school is an exciting time at MSOE. We are putting the final touches on a pleasant and busy summer as we prepare for the arrival of more than 600 new freshmen and transfer students. Many of them are leaving their homes for the first time, starting life in a dorm with a roommate, responsible for getting to class on time and exploring a new-found independence all while having to find the time to study! It’s a daunting proposal, even for those who have been through it already. In addition, money looms large over every aspect of their campus life. But you can help to make a difference for these students, just like generous alumni helped to make a difference for you.
To make an MSOE education possible for these deserving students, we are hard at work raising more money through the Annual Fund.
As an alumnus, we count on your support. You remember the days as a student when you received generous support from MSOE. Whether it was through a scholarship, or through your exposure to activities in a classroom, lab, or work space donated by a benefactor; you were touched by a donor’s generosity.
As you consider the educational future of your own children and grandchildren, MSOE is hopeful that you consider a provision to provide for the students of our future. A planned gift to MSOE is easy and painless.
This fall, take a look at your estate plan and consider a provision to MSOE. After you provide for your family’s needs, remember MSOE and the great education that prepared you for your career. A career that provided you with the opportunity to live a certain lifestyle and provide for your family.
You are part of our family, and we are asking for your help to touch the future. The gift you make can take the form of cash, a life insurance policy or any number of other assets. A planned gift can be small or large. Regardless, it will make an impact and will help sustain MSOE’s place in the educational landscape. Please, contact Scott Weaver at (414) 277-7148 or at weaver@msoe.edu and start the conversation.
I’m certain that summer has seen changes in your life. Many of us have enjoyed celebrating engagement announcements, weddings and the birth of children and grandchildren; while others may have experienced the sorrow of the death of a loved one. While our minds tend to slow down in the summer months, the events that trigger thoughts and actions of significant change never seem to take a vacation.
This is a perfect time to find a cool spot, sip a cold drink and reflect on the direction of your life—specifically, where it’s heading in the next few years and how your estate plan fits in.
In all reality, by not reflecting on your estate plan, you are simply inviting disaster to occur. Failure to leave your loved ones without a plan means the state will dictate how your heirs may proceed, with the assistance of court-appointed attorney.
That is a pretty ugly reality check — a government entity telling your family what to do, how to do it, when to do it AND charging your estate at every step of the way.
Why not avoid that pain and heartache by making an estate plan? You can make the plan and appoint who you would like to carry out your plan to conform to your wishes. This process is actually pretty easy and MSOE can help you along the way.
While we don’t draft documents, our experience in the fields of both estate planning and investment advice might be just what you need as you begin the planning process. Wouldn’t it be nice to have someone help you understand where you are today and help talk you through the process to where you would like to be tomorrow? We’ll help you concentrate your thoughts and direct your efforts more efficiently so that the time you spend with your financial planner, accountant or attorney is wisely spent.
You are a member of the MSOE family and we would like to provide continuing value to you and your family. We would like to be there to assist you as your life evolves. The learning process never stops and neither does the value of your degree. Your relationship with your alma mater is a lifelong one.
If this concept appeals to you, why not call Scott Weaver, director of Planned Giving, at (414) 277-7148 and start the conversation.
As you plan your summer of weekend getaways, long vacations, weddings, anniversaries, picnics and family gatherings it is important that you have a plan to cover the unexpected. In my 30-year career as an estate attorney I’ve seen first-hand the regret, heartache and tears that can result from a lack of planning. The number of people who don’t have a will is astounding. Wills are relatively easy, simple to do and cheap—compared to the alternative. Read more to find out how we can help you with the process.
It is important to have a blueprint for how you would like your estate to be distributed. Would you take a trip without some planning or at least a GPS or map? Would you throw a wedding or picnic without a plan?
Why would you trust your estate to the whims of those left behind? Not only is it perilous, but can cost thousands of dollars to hire an attorney to make it turn out correctly.
You may have done this planning years ago—however, you should routinely review your estate plan. Tax code changes; determine if you need to have it revised or up-dated. It certainly can’t hurt, and will give you peace of mind.
Might we help you with this process? We can assist you by talking you through your options and perhaps suggest ideas that might simplify your estate plans.
MSOE can assist you in getting everything prepared and organized so that when see your attorney, it will be a quick and efficient process. By being well-prepared, it may also save you money. We can help to bring sharp focus to your estate plan and to introduce cost and tax saving advantage—such as making a provision to benefit MSOE—that will have a lasting impact.
This service will not cost you anything. We value you as an integral part of the MSOE family. This process ultimately will benefit everyone involved.
Let’s start the conversation. Call me, Scott Weaver, director of Planned Giving, at (414) 277-7148 or email me at weaver@msoe.edu.
Last year MSOE formalized its planned giving program by hiring Scott Weaver, J.D. to serve as planned giving director and implement a program to involve MSOE constituents and build the university’s endowment fund. Click here to read about the fruits of his labor, and how planned giving is making a difference on campus.
We have introduced planned giving through our internal and external marketing efforts to the Board of Regents, the Corporation Board, alumni, faculty and staff, students and friends of the university.
Establishing a planned giving program for the university is of paramount importance. Successfully building an endowment fund is a very intensive and deliberate process.
Identifying, cultivating and creating tax-wise estate plans for our donors takes time; yet, even at this early stage, we are seeing wonderful signs of success.
We are placing a special emphasis on sustaining and increasing participation in the Annual Fund, which provides immediate financial resources for scholarship and program development.
However, once involved, an individual or family can consider making a lifetime tribute gift to MSOE, which enables the donor to have an impact on the future of the university in a way that is most meaningful to them and their family.
Planned giving efforts are critically important in order to build a substantial endowment fund to secure the financial future of MSOE. Endowment distribution provides funding for scholarships, continued program support and ongoing physical development of the university.
There are a variety of options available to prospective donors. For example, Weaver is working with a recently graduated alumna and her husband, who are evaluating the possibility of designating the proceeds of a life insurance policy to MSOE. This provision will accomplish a goal that is meaningful to them and impactful on the university. They can fund such a vehicle at a fraction of the cost of the eventual gift that will fund a project in perpetuity.
At the other end of the spectrum Weaver is working with an alumnus and his wife, both in their 70s, who are discussing their desire to have a major impact on the quality of education for generations of students to come. They are intrigued by an innovative academic program concept which, if endowed, would enhance current and future enrollment to MSOE and will clearly establish their legacy.
One of MSOE’s mid-career alumnus understands the importance that participation in national and international competitions plays in exposing MSOE’s outstanding academic reputation and is considering an endowed gift to support these efforts.
Exciting things are happening and Weaver would love for you to share your hopes and dreams for MSOE with him. If you can dream it, perhaps together we can make it happen. Please call or email him today and we can start the conversation: (414) 277-7148 or weaver@msoe.edu.
What is important to you and why?
This is a question MSOE’s Director of Planned Giving, Scott Weaver J.D., often asks when meeting with a donor. For almost everyone, the answer revolves around family, and securing loved ones’ futures. Many people also want to help promote MSOE’s mission, but perhaps feel they’re not able to do both. Most are surprised when they learn they can simultaneously make a lasting impact on their family and on MSOE. Weaver has helped many people achieve this dream. Read below to learn how he can help you.
“My obligation is to show donors how they can make their dreams come true in spite of their perceived or very real obligations. I recently met with a donor who wanted to give MSOE a substantial gift, but felt that he needed to take care of his adult daughter with needs. He presumed that she would live on after his death because of her relatively good health and that she, at some point in the future, could put MSOE into her will.
“As we discussed the importance of providing her with monthly assistance, I could feel his sense of obligation and devotion to her. After all, she is his daughter and she needs his help. Being respectful of that, I suggested he speak with his attorney, who could set up a trust for his daughter’s benefit. Her bills would be paid by the attorney’s staff, she would have monthly spending money and, most importantly, the corpus could be retained and prevented from being spent frivolously.
“I then suggested that he could still benefit MSOE after his daughter’s needs had been met. We talked at great length about HIS dreams of helping students get the same great education that he got, and getting them started on the road to success. He believes in the American dream and wants to share that belief with others, and he has a passion for MSOE. We discussed a named and endowed scholarship and he was thrilled.
“The details were easy to take care of and I showed him how both of his dreams would ultimately come true.
“By the time the conversation ended, this alumnus had peace of mind knowing that his daughter could be generously and faithfully cared for the rest of her life. In addition, the university that he loved and that he felt had given him the tools needed to be successful, could also benefit. He would touch the future by helping students in perpetuity through a named scholarship.
“There is always a need for donor support at MSOE, whether for a few dollars for a student project or hundreds of thousands of dollars for a building update. The university’s needs are many. We need to stay current to become one of the nation’s premier undergraduate, technology-based universities. I am hopeful that a need of the university coincides with a donor’s interest. Every little bit helps, and the donor can relate to that concept. In almost every conversation, I am told that the donor just wishes that they could do more by making a larger gift to make a real impact on the future of MSOE. It is my job to make that wish come true.
“Like everything else in life, it all starts with a conversation. Please call me today at (414) 277-7148 so that we can start that conversation.”
We want to help MSOE build its endowment because we understand the need for MSOE to be self-sustaining, but we just don’t have that kind of money. We give to the annual fund, but we are retired and don’t have any liquid assets that we can easily give away. How can we make a lasting difference for MSOE students without impacting our day-to-day finances?
As we have discussed previously, annual gifts support the annual operating budget. They provide the needed financial resources to support academic programs, scholarships, equipment and materials purchases, computers for labs, student services, as well as academic and co-curricular programming and activities. Annual fund support is crucial for the year-to-year sustainability of the university.
To ensure the university’s long-term sustainability we must develop a larger pool of endowed funds. In most cases, endowed funds do not rely on annual contributions from the donors or businesses. An endowed gift is money that is safeguarded and invested very carefully as directed by MSOE’s Board of Regents. These gifts are made to last in perpetuity.
A planned, endowed gift is traditionally made with a larger sum of money or appreciated assets. This gift may be planned to coincide with the end of one’s life. It is a gift that is not given until after death when there is no further need for the assets. You can provide MSOE with specific stocks—appreciated or depreciated—bonds or a brokerage portfolio. The university will work with you during your life to ensure the gift is made quickly and efficiently.
In addition to a gift of stocks, bonds and other assets, a simple way to make a planned gift to MSOE is by naming the university as the beneficiary of a life insurance policy or of a qualified retirement plan.
Nearly any one of your current assets may be left to the university after your death without compromising your current financial position. You use your money as you need to use it for your care and well-being with no restrictions.
Once the decision is made to make a planned gift to MSOE, we will work with you to determine how the gift will be utilized. Scholarships are of the utmost importance at MSOE, but there may be someone that you might wish to honor or remember and we can certainly accommodate that request.
This is a wonderful way for you to touch the future. Please contact MSOE Director of Planned Giving, Scott Weaver if you have any questions about planned giving and MSOE. Scott's direct number is (414) 277-7148 and his email is weaver@msoe.edu.
My wife and I simply never talked about estate planning and the idea of doing something now is just too overwhelming. I’d rather let the state take care of it. My wife knows that I want to give MSOE something and she can take care of it after I am gone, can’t she?
MSOE's Director of Planned Giving, Scott Weaver J.D., discussed this scenario recently with Milwaukee-area attorney Bradley Kalscheur, partner in the Wealth Planning Services Practice Group at Michael Best & Friedrich. He explains how estate planning can protect your assets and potentially reduce your taxes:
"Many people hesitate to create an estate plan because they are concerned about the cost to prepare the plan. One consideration is that by having a properly drafted estate plan, the costs of administering an estate will be reduced. Most estate planning attorneys meet with clients to develop the plan, and at the end of that meeting can give clients an estimate of the cost to complete the plan. If that estimate is more than a client is willing to pay, most attorneys would not bill the potential client for that first meeting. But, the client at least has some knowledge of what is entailed in the estate planning process.
Without an estate plan, assets pass to heirs according to the laws of intestacy, which vary in each state. There are several disadvantages of intestacy. First, only a limited share of estate assets may pass to desired beneficiaries. Second, those heirs have no control over the appointment of the personal representative and the person appointed must post a bond. Lastly, if there are minor children, there is no control over the appointment of their guardian.
By contrast, there are several advantages in having a will or living trust:
- First, by having a will or trust, a person has the ability to consider a beneficiary's individual characteristics, circumstances and needs. Some children may have special needs, some may have independent means and may not need as much of an inheritance as others, while others may need asset protection from creditors (like a potentially divorcing spouse).
- Second, by having a will or trust, personal and/or real estate property may be left to non-family members like a favorite charity or friend.
- Finally, by having a will or trust, a person is able to choose the person who would serve as personal representative of the estate and guardian of minor children.
All of these options require a certain level of knowledge and understanding. MSOE is here to help you initiate this process and/or to work with you if you decide to leave a planned gift to the university. Please contact Scott Weaver directly if you have any questions about planned giving and MSOE. Scott's direct number is (414) 277-7148 and his email is weaver@msoe.edu.
My wife and I want to take care of our children and grandchildren first in our estate plan, but we also want to give back to MSOE, which was there when I needed financial assistance to finish my schooling. I just don’t want my money going into a general fund where I can’t see how it’s being used. How can I direct how my donation is used?
Whenever someone gives a gift to MSOE, it is a conscious decision to benefit the university. There are two types of gifts to choose from, both of which are vital to the success of MSOE:
The gifts that alumni, parents and friends of the University make in response to yearly requests for support comprise The Annual Fund. Annual giving is a way in which the largest numbers of constituents are able to support MSOE. The Annual Fund includes unrestricted gifts and gifts restricted for current operations. Gifts to the Fund are expended in the fiscal year in which they are received.
Annual gifts support the annual operating budget. They provide the needed financial resources to support academic programs, scholarships, equipment and materials purchases, computers for labs, student services, as well as academic and co-curricular programming and activities. MSOE depends on annual gifts to sustain its position of academic excellence.
The other type of gift is an endowment fund gift, which is given for a specific purpose by the donor to ensure MSOE’s perpetual existence. These funds provide a restricted pot of money from which a portion of the interest is used to fund and support on-going expenses. These expenses cover academic programs, scholarships for students, renovation of physical space or a myriad of other university needs. Endowed gifts are established at varying dollar amounts and, once established, they free up money by guaranteeing certain needs will be paid for by your fund and not from the university’s operating expenses. This support allows the university to expand its efforts in other areas knowing that your fund guarantees the payment of the program which you have chosen to support.
If this type of gift appeals to you, please contact Scott Weaver, JD, director of planned giving, at (414) 277-7148.
He has a list of projects that may appeal to you, ranging from a few thousand dollars to millions of dollars—something to fit everyone’s budget. It can be done anonymously or it can be a program that is named in honor or memory of yourself or a loved one. The program can be tailor-made and designed in such a way as to support your very specific interest. You are only limited by your creativity in your desire to support MSOE.
The choice is easy; the choice is yours. A planned gift is the gift that anyone can make and one that MSOE cannot do without.
Because I am over 70 ½ years old, I must take my mandatory IRA distribution by the end of the year. However, I do not need the income this year and would prefer to donate it to MSOE. Can I do this without having to pay taxes? Is it easy or complex?
MSOE’s Director of Planned Giving, Scott Weaver J.D., discussed this scenario with Milwaukee-area attorney Bradley Kalscheur, who is a partner in the Wealth Planning Services Practice Group at Michael Best & Friedrich. Here’s what he says to his clients who ask the same question:
"If you are over 70 ½ and have an individual retirement account (IRA), you must take minimum required distributions (MRD) from the IRA each year, whether you need the money or not.
If you are charitably inclined, have not taken your MRD for 2011, and do not need the distribution to meet other financial obligations, consider making a donation of your MRD directly from your IRA to a public charity (which includes MSOE).
This direct transfer must be completed before December 31, and has a limit of $100,000. Contact your IRA Trustee to arrange this type of distribution, because the funds must be transferred directly from the IRA to the qualifying charity."
If this type of opportunity interests you, it is a simple decision and easy to implement.
Please call Scott C. Weaver, director of Planned Giving at (414) 277-7148 for further information or to answer any questions.
I know that the end of the year is a great time for last-minute tax planning, is that true for charitable gifts as well?
It’s hard to believe that the end of the year is fast approaching. There are many ways to lower your tax bill and support MSOE’s mission, but year-end decisions that affect your taxes will need to be made fairly quickly.
One of the strongest motivators for initiating activity prior to the end of the year is the certainty of the 2011 tax rules and regulations. The uncertainty that 2012 brings—including a potential end of the charitable deduction as we know it—is a reason to act now. 2012 may bring a whole new set of tax rules and regulations which may result in unfavorable consequences and lost opportunities that might never be recaptured.
Year-end charitable gifting options that could lower your taxes include gifts of cash, gifts of stock, gifts of life insurance, and bequests:
Cash is the easiest way to give. Cash gifts can lower your annual tax bills if the gift is postmarked by Dec. 31, 2011. Call MSOE directly at (414) 277-7151 for more details.
If you are considering this kind of a gift, please call MSOE’s director of planned giving, Scott Weaver, at (414) 277-7148 or weaver@msoe.edu well in advance of December 31. It is important to get this ball rolling right away due to the specific rules, regulations and deadlines that are in place.
If premiums remain to be paid on the policy, the future premiums can be deducted from the donor's income tax on an annual basis. In this case, MSOE must be named as both policy owner and beneficiary. To obtain a gift or income tax deduction, all incidents of ownership and rights in the policy must be assigned to the charity. Again, if you are interested in this option, or have questions, contact Scott Weaver at weaver@msoe.edu or (414) 277-7148.
Charitable remainder trusts are popular planned giving vehicles from a tax efficiency perspective. Charitable remainder trusts allow donors to reduce estate taxes, defer capital gains tax and claim an income tax deduction.
Charitable remainder trusts provide distributions of a specified payment to one or more persons. The payment may be structured as an annuity or structured payment. Nonprofits receive the remainder from the trust upon the termination of the trust, either upon the death of the last beneficiary or after a stated period of time.
There are some favorable aspects of this technique that are available for this year and, hopefully, for 2012. As the law is currently structured, these same favorable aspects are scheduled to disappear thereafter and revert to a more restrictive dollar amount in 2013. Your attorney and tax advisor can determine whether these rules will impact you favorably.
In most cases of advanced tax planning and charitable gifting, donors should consult with their tax and financial advisors well in advance of the year-end.
MSOE has a gift acceptance policy that guides us regarding giving assets and donors need to ensure their donation can be properly accepted and accounted for so that the deduction is valid.
Charitable giving is essential in long-term financial planning and as a wealth transfer strategy. Philanthropic intent and tax advantaged gifting go hand in hand. The advantages of philanthropic financial planning are significant for donors, and include tax efficiency, asset diversification, and retention of tax dollars.
An individual’s opportunity relies on their tax bracket and a number of other factors. Additionally, and perhaps equally important, is how the gift will impact the MSOE community. Through your personal philanthropy, you allow others to experience what they might not otherwise be able to because of a number of reasons. Your gift will make an MSOE education a reality for a student who otherwise could not afford it. Let’s face it, we have all had help at some point in our careers. Now is the time to pay that help forward. It is your turn to provide the next rung of the ladder and to help the current generation and those to come.
My wife and I will be retiring soon and we’re in the process of drafting a will. We want to leave something to help MSOE students. Is this process complicated?
No, it is not. Making a bequest to MSOE through your will or trust is the simplest form of planned gift that a donor can make. When drafting, or re-visiting your will, first determine whether you will leave a set amount to MSOE or a percentage of your total estate.
After determining which type (amount or percentage) you would like to gift, the only other decision you need to make is whether the monies will go for a specific purpose (such as a named and/or endowed scholarship) or into the general fund to be used as needed by the university.
Work with your attorney and recommend that this language is used: “I bequeath the sum of $___ (or a percentage) to Milwaukee School of Engineering, Milwaukee, WI, to be used or disposed of as its Board of Regents in its sole discretion deems appropriate (or for a specific purpose).”
If you or your attorney has any questions about the process or the specific language, please contact MSOE’s director of planned giving, Scott Weaver at (414) 277-7148 and he can assist you.
If you are comfortable with telling us about your gift, please do so either by calling Scott or by sending a copy of the provision to the MSOE Development Office at 1025 N. Broadway Milwaukee, WI 53202
Your intention to support MSOE through your will not only assists the university in our planning for the future, but it allows us to thank you personally for your thoughtfulness and generosity. It also enables us to recognize your commitment to MSOE. Your example may even encourage others to do make a similar contribution.
Thank you for touching the future by helping the generations of students to come.
What is a planned gift and why is developing your endowment so important?
A planned gift usually consists of a larger amount, and is given at some point in the future when the donor is either in a position to make a larger gift or no longer needs his or her assets.
Planned gifts can be unrestricted or made for a specific purpose, and have a large impact on MSOE’s endowment. Growing MSOE’s endowment is vital to ensuring ample scholarship opportunities and facility upgrades for students, as well as giving MSOE a competitive edge against peer institutions.
Endowment: Why does it matter?
MSOE has put a recent emphasis on increasing its endowment. Endowment funds are vital to supporting student scholarships.
Despite MSOE’s rich heritage and strong placement, our endowment is substantially smaller than that of our peer institutions. This lack of substantial endowment leads to two issues:
- A. When publications rank undergraduate institutions they weigh a number of factors, one of which is "alumni satisfaction". In order to measure an intangible such as this, the publications use the alumni donor rate as a measuring stick.
- For the fiscal year ending June 30, 2011 the MSOE alumni donor rate was 12%.
- At peer institutions, the alumni donor rate fluctuates between 18% and 30%.
- Simply put, our competition boasts endowment funds at five to 20 times larger than ours. MSOE has a ways to go. Our lack of alumni participation impacts our ability to increase our ranking amongst these peer institutions.
- B. A low endowment also means that we lack the dollars needed for upgrading labs, developing new facilities and giving more scholarship aid to deserving students. For example:
- If MSOE had $600 million dollars in our endowment, the annual interest distribution would amount to approximately $30 million. These funds would be independent of any income derived from tuition, grants, donations and other income. That money could be used in a variety of ways, including scholarships, to attract high-caliber students.
- The funds that the MSOE endowment currently distributes, while important, are not sufficient to maintain current programs, let alone grow them. As a result the scholarships that we give are, to a great degree, unfunded and the challenges of new classrooms and equipment are left unmet.
- Essential to understanding the role that a healthy endowment plays in the stability of a university is that the endowment corpus is never spent. Therefore, it will generate an income stream in perpetuity to continue meeting the needs of the university. If the corpus grows with inflation, it will provide an important on-going revenue source to underpin the financial strength of the institution.
How does endowment affect me?
MSOE alumni can compete professionally with graduates from any university in the country. If we are able to improve our ranking through your participation in the Annual Fund, the reputation that comes with being an alumnus of MSOE with grow and your professional opportunities will follow.
Recently, MSOE has had several people step up to the plate and make a formal planned gift commitment. They have pledged IRAs, life insurance policies and trust monies.
For $25,000, a person can set up a named endowed scholarship at MSOE. Remember, the money does not have to come out of your pocket today, it is a promise of a gift in the future. It is the first step, but an important step, in understanding the importance and the impact of a planned gift—it is truly a way to touch future generations students for years to come.