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TAX AND ESTATE PLANNING FOR HOLY NAMES UNIVERSITY ALUMNI AND FRIENDS. VOLUME 1 ISSUE 2on the Future

eraldine (Jerry) came to College of the Holy Namesas a freshman at the recommendation of Sr. Joan,OP, one of her teachers at St. Vincents High Schoolin Vallejo. Jerry and her mother visited the College and sheremembers meeting Sr. M. Rose Emmanuella Brennan that day.

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cofeminism, or ecological

eminism, is a term coined

n 1974 by Franoise

dEaubonne. It is a phi-

osophy and movement

orn from the union ofeminist and ecological

hinking. Geraldine (Jerry)

Hobgood, a loyal friend

nd alumna of Holy Names

University, exemplied eco-

eminism before Franoise

dEaubonne thought of the

word! Her stewardship of

ur earth has grown and

volved over the years and

er mantra has become

sustainabilitythe capac-

y to endure. In addition

o her work for environ-

mental sustainability, Jerrys

reation of a Charitible

emainder Trusta planned

ift with Holy Names as the

eneciaryhelps to assure

hat her alma mater will

ndure.

She always wanted to go to college andactually had her heart set on attending the

University of California at Berkeley (where

she was, indeed, accepted). Her wise motherinsisted that she attend Holy Names for herrst year only. That, of course, was all it tookfor Jerry to get hooked. Looking back, sheacknowledges that she was able to attend

Holy Names because of the generous nan-cial aid that the College afforded her and forthis she is most grateful.

Jerry received her Bachelors Degree in Eco-nomics and Psychology. Because she loved towrite, Jerry thought she wanted to become a

journalist for a newspaper. Sr. M. Claire Mad-eleine Carlin advised her that taking literature,sociology, and humanities would give her a

wellrounded education and serve her well inthis eld. She remembers her beloved institu-tion for its academic excellence, for developinga social conscience among its graduates, andfor deepening each persons awareness of eco-nomic and moral responsibilities. Jerry recog-

nizes that she could not have accomplished allthat she has throughout her life without this

valuable educational experience.

After graduating, Jerry spent six years inAustria and Italy serving in the special ser-

vices. Returning to the U.S., she worked asa counselor for several years in Los Angelesfor Catholic Social Services. In the late 1950sJerry moved to Aspen, Colorado and openedthe Opera House Espresso with a tool kitcontaining a hammer, a saw, and a spatula.

This was her rst natural interior...made oftree stumps, animal hides and the ends ofcable telephone spools.

After a wide variety of ventures and adven-tures, she then relocated to Grand Junctionand joined VISTA where she was attachedto legal services as a community organizerserving the poor, elderly and minority popu-lation. Ever alert to social injustices, Jerry

(as a VISTA volunteer) was instrumental instopping a highway, which was planned toplow through the poorest section of Rie,

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Are you interested in a making a contribution tocharity, but are unsure whether you will have adequatefuture income? Are youpostponing the sale of

an appreciated assetto avoid a substantialcapital gains tax? Doyou want to make asubstantial gift to youralma mater, but feel

that this goal may be

out of your reach? Ifany of these scenariossound familiar, you maybe interested in creat-ing a Charitable Re-

mainder Trust (CRT).

What is a CRT?

A Charitable Remainder Trust (CRT) is an irrevocable

trust, which allows you to transfer assets to a trust inexchange for an income interest while designating thecharity of your choice as the ultimate beneciary of thetrust funds. The CRT can provide income to you and yourspouse that can last the rest of your lives, or, if you choose,a specic number of years.

How does a CRT work?

Your attorney drafts the document establishing the CRT,which identies the donor, the trustee, the income bene-ciary, and the charitable remainder beneciary. You, as the

donor, can designate yourself and/or your spouse as theincome beneciaries. Another option is to name an incomebeneciary other than yourself and/or your spouse.

Once the CRT is established, you then gift cash or appre-ciated assets to the CRT. After the assets are contributedto the CRT, your accountant then determines the valueof the immediate income tax deduction that you may beentitled to as a result of making a gift to the CRT.

The trustee invests the CRT assets for the term of thetrust. The trustee may sell an appreciated asset insidethe CRT without incurring any capital gain. An income

stream is then paid to the designated income beneciaryfrom the trust assets. Once the trust term ends, the re-

FocusonCharitable Remainder Trustsby Jesse Bassett

maining assets are distributed under the guidelines to thecharitable remainder beneciary you previously designated

in the document establishing the CRT.

Income Stream Annuity or Unitrust

Two different payout options are available for the income

beneciary of the CRTan annuity payment and aunitrust payment. An annuity payment requires thetrustee to pay a xed amount each year for as long as thetrust term lastse.g., $50,000 per year. Under the annu-ity payment, the income payments remain unchanged andare not dependent upon the value of the CRTs assets.

Under the unitrust payment, the trustee is required topay a xed percentage of the trust assetse.g., 5% of thevalue of the trust. A change in the value of the CRTs

assets will cause a change in the amount of income dis-tributed to the income beneciary. The unitrust paymentdiffers from the annuity payment in that the unitrustpayments may be variable, as the CRTs assets must berevalued annually.

Tax Benefts

CRTs are exempt from income tax and also allow the

tax-free sale of appreciated assets inside the trust. Muchof the power of the CRT lies in its tax-exempt status. Do-

nors can fund CRTs with a variety of appreciated assetsincluding stocks, bonds, mutual funds, real estate, part-nership or LLC interests, closely held corporations, art,and other tangible property. This preferential tax statusallows the donor to transfer these types of assetsthathave appreciated in value well beyond their original cost

and turn them into an income stream without incurringany capital gain.

CRTs are a exible answer to many charitable and tax-

related problems and can accomplish multiple goals. TheCRT is unmatched in allowing the liquidation of ap-preciated assets without incurring capital gains tax andincreasing cash ow by providing an income stream tothe donor. Utilizing a CRT allows a donor to give back

to charity and increase liquidity and maintain an incomestreamreally the best of all worlds.

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The gift of an education ispriceless! Yet the cost of an educa-tion can be very expensive. Alumniand current students, alike, have

expressed their gratitude for schol-arships they received that enabledthem to receive a quality educa-tion, whether at the Lake Merrittcampus or the Mountain Boulevardcampus.

Holy Names University has been

blessed to receive a number of

endowed scholarships over the years

that were obtained because an alum

or friend designated funds in their

estate plans for scholarships. We

are pleased to highlight in this is-

sue ofFocus on the Future two suchgifts that we have received from

bequests.

We received word in Fall 2008 thatformer Regent, Robert Summers, had

remembered Holy Names University

very generously in his will. The Rob-

ert W. Summers and Beverly Sum-

mers Scholarship will target students

who are interested in pursuing careers

in science/medicine and journalism.

During a memorial Mass that was

celebrated in McLean Chapel on

February 26, 2009, the sixth-month

Focuson

anniversary of Bobs death, Sister IreneWoodward, who had been President

when Bob was most active with Holy

Names, shared her reections of his

life. She spoke about how Bob was in-

troduced to then-Holy Names College:

During this time, we also started an

annual Business Symposium, bringing

the business and civic leaders together

on our campus for a full day, to dream

and plan together for a better Oakland

and East Bay. We did not know any-one from Chevron, which had recently

moved its corporate headquarters out

of San Francisco to San Ramon, and

which was eager to establish good rela-

tions with this new part of the world.

The gift from Chevron to us, one that

has endured to this day, was the as-

signing of Bob Summers, their Man-

ager of Public Affairs for the East Bay,

to head up their relationship to Holy

Names. Through his position, he wasable to get many gifts for Holy Names

from Chevron through the years, but

the greatest gift was Bob himself.

Bob was very generous to Holy Names.

Despite his frequent presence, Bob was

never imposing or sought the lime-

light. Sr. Irene concluded this way:

So, when Bob died last summer, we

had grateful memories of a truly gentle

man, and we will always hold themfondly and sacredly. But the story is

not nished; Bob did one nal thing

in the same way he had done every-

thingquietly, modestly, without

bringing attention to himself, but with

deep loyalty and devotion. I might

say that he fullled every university

presidents dream: to learn one day

that someone has left the institution a

very signicant amount of money for

student scholarships. We had no idea

Scholarships from Bequests

that he included us in his will, muchless, for a very large gift.

In January of 2009 we receiveda check from the estate of Patricia

Ward Engstrom. Pat was not in our

database so it took a bit of sleuthing

to determine her relationship with the

University and

we discovered

that she was amember of the

Class of 1950!

She graduated

with a degree

in history and

was a member

of the history

honor society,

Alpha Phi Alpha. She also participated

in the International Relations Club,

Masquers (the drama club), StudentTeachers Association, Tau Delta Gam-

ma (scholastic honor society), and the

math club. During her senior year, Pat

was named as the Business Manager of

Excalibur, the yearbook, and she was

recognized by the staff for keeping

us out of the red. After graduation,

Pat moved to Fresno and was married.

Although she had not maintained con-

tact with Holy Names, Pats education

meant a great deal to her, obviously, asHNU was one of two major recipients

of her estate.

Thank YouBob and Pat, for remembering ourstudents so thoughtfullyyourpartnership with us will enable ourstudents to achieve their dreams of

receiving a college education.

Robert Summers with sister, Beverly Summers

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A bequest in a will, or a designation of Holy Names University as a beneciary

in a living trust, insurance policy, IRA, Keogh, 401-K or prot sharing plan.

The establishment of a highly tax-advantaged trust (for example, a Charitable

Remainder Trust or Charitable Remainder Unitrust) providing income to

family and friends during their lives and the principal to Holy Names at their

death. Such a trust may also be set up so that income goes to the University and

the principal goes to your heirs.

A gift of real estate entitles you to an income tax deduction for the propertys

full appraised fair market value. Almost any marketable real estate is suitable

for a charitable gift, including personal residences. Unencumbered property is

preferable and generates the greatest tax benet.

A contribution to the Holy Names University Pooled Income Fund which pro-

vides income to beneciaries, you or others you name, with the principal left to

Holy Names at the death of the beneciaries.

How to Arrange Gifts

through the Marie-RoseDurocher Legacy Society

OFFICE OF PLANNED GIVING

Sr. Carol Sellman:Director of Planned Giving

phone: 510-436-1265email: sellman@hnu.edu

Dav Cvitkovic:Vice President for InstitutionalAdvancementphone: 510-436-1198email: cvitkovic@hnu.edu

HOBGOOD continued from page 1

Colorado, and would have eliminated

the low-cost housing there. In anotherinstance her comprehensive investiga-tion of jail conditions in Grand Junc-tion led to the construction of a new

Mesa County Jail. In addition, Jerrysresearch of domestic violence brought

about the establishment of a womenssafe house.

Jerrys inspiration for sustainable build-ing started when sheheard BuckminsterFuller lecturing onsolar energy at the

Aspen Institute

for Humanistic Studies. His commen-

tary on solar energy was inspirationalto Jerry. This began a lengthy period ofextensive research on this topic as wellas attending conferences on alternative

building and constructing four homesfrom sustainable products. Her philos-

ophy is summed up with these words:I am committed to the principle thatwe do not own the land, but that weare merely temporary stewards and areheld accountable for how we use orabuse it. What we do and how we live

have a profound effect on the commongood not only in our own community,but also in the world.

Cognizant of preparing for the future,Jerry wrote her Charitable RemainderUnitrust in 1993. Grateful for theeducation and nancial assistance shereceived at Holy Names, she named her

alma mater as the beneciary of thetrust so that future students can benfrom an education at Holy Names Uversity. When the HNU Legacy So

was established in 1995, Sr. Margue

Kirk met with Jerry and she agreed become one of the rst members of Legacy Society.

It is because of gifts like Jerrys thatUniversity will continue to make a dference in students lives well into thfuture. We are truly blessed to coun

our friend, Jerry Hobgood, among tmembers of the Marie-Rose DurochLegacy Society.