C H A R I T A B L E E S T A T E P L A n n I n G & T A x T i p s • s p r i n g 2 0 0 8

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Office of Planned Giving

Stanford University

Frances C. Arrillaga Alumni Center

326 Galvez Street

Stanford, CA 94305-6105

Nonprofit Org. U.S. Postage

PAidPermit No. 28 Palo Alto, CA

C H A R I T A B L E

E S T A T E

P L A n n I n G &

T A x T I P S

S P R I n G

2 0 0 8

C r e a t i n g a L e g a c y

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S ta n f o r dS ta n f o r dRememb e Rf 2

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chaRitable gift annuities: legacy gifts with PRactical aDvantages

stAnforD scrAPBooK In 1981, Drs. Bruce Reitz and Norman Shumway performed the first heart-lung transplant at Stanford. (See “Remembering a Daughter,” page 2.)

When Catherine Stroube Hazlett, ’40 (German studies), was a first-grader in Palo Alto,

she was fascinated by the Stanford students rushing around town collecting wood for the Big Game bon-fire. “That’s when I made up my mind I would go to Stanford,” she says. When she arrived at the Farm in 1936, men still outnumbered women on campus by about 2-to-1, and the attention they lavished on their classmates was memorable.

“On Valentine’s Day, the boys from Sigma Alpha Epsilon always serenaded the women’s dorms,” says Catherine. “One year Perry Como was their surprise guest!”

Like many alumni, she has cheered the Cardinal on at football games, attended reunions, and contributed regularly to The Stanford Fund. In recent years, her primary connection to the university has been through her travels. She has taken numerous Travel/Study trips with the Stanford Alumni Association; South America, Easter Island, and China have been among her more exotic destinations.

One memorable trip was a cruise from Singapore to Hong Kong with other members of the Class of

1940. “There were around 30 of us on that cruise,” Catherine recalls. “One couple celebrated their wed-ding anniversary and had a party on board the ship.” Her class was especially fortunate in its travel oppor-tunities: Carné Linder, ’40 (German studies), owned a travel agency in San Mateo and organized several reunion tours, including the Singapore cruise.

Carné also told Catherine about the way she had included Stanford in her estate plans. Rather than leaving a bequest in her will, she had established sev-eral charitable gift annuities that would serve both as gifts to Stanford and as reliable sources of retirement income. Catherine learned more about charitable gift annuities from the Office of Planned Giving and decid-ed to do the same.

“I had already provided for Stanford when I set up my trust,” says Catherine, “but by giving them the money now, I could make use of the income and still be cer-tain that they’ll end up with at least a certain amount.” Practical and generous, Catherine has taken this ap-proach with several of her favorite charities.

When Carné passed away in 2005, Stanford used the funds she had donated to establish the M. Carné Linder

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11

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“He told Karen he was almost ready to do heart-lung

transplants in human patients,” Betty recalls, “and he

asked her if she wanted to be the first. She thought it over

and said, ‘I think maybe I’d like to see how it goes with

somebody else.’”

The first two transplants, performed by Dr. Shumway

and Dr. Bruce Reitz, were successful. A few months

later, Karen became the third. “I never had any second

thoughts,” she told reporters on the eve of her surgery.

Betty spent the night in the surgical waiting room along-

side Turner, Karen’s devoted stepfather. The operation

was more complicated than expected, and Karen died

three days later.

The Brashears remained close to the surgical team.

When Turner needed bypass surgery several years later,

he “didn’t want anyone but Shumway.” Wanting to sup-

port the doctors’ research, they amended their wills to

include a donation in Karen’s name to the Department of

Cardiovascular Surgery.

“Research by these wonderful doctors—who never gave

up—was the reason we had Karen as long as we did,”

says Betty. “It’s not just for

Karen’s memory, but for

people who are still doing

this research. There is more

to be done.”

Now in their 80s, Turner

and Betty are still a part of

the Stanford community.

In 2005, they contacted

Carol Kersten in the Office

of Planned Giving to ask

how they could add to

the amount they planned

to leave Stanford. Carol

suggested a charitable gift

annuity and explained the

tax advantages.

“Because they created the annuity at Stanford with a

gift of appreciated securities, they didn’t owe any capital

gains tax when the shares were sold,” Carol says, “and

they also received a substantial income tax deduction.”

Stanford reserves and invests the gift proceeds during the

Brashears’ lifetime. After they die, the remaining assets

will establish the Karen Lee Wilson Fund for stem cell

research related to the heart and lungs.

“I hope this research will lead to better chances for chil-

dren born with heart defects,” says Betty. “Or better yet

… stop the defects from occurring in the first place.” v

Scholarship Fund, providing need-based financial aid to

undergraduate students. Catherine, now 89, continues to

receive quarterly payments from her gift annuity, know-

ing that one day Stanford will put her unrestricted gifts

to good use. Many of the programs available to today’s

students were made possible by planned gifts. Thanks to

alumni like Catherine, this important tradition will con-

tinue to serve Stanford students for generations to come.

RemembeRing a DaughteR, aDvancing ReseaRch Not everyone joins the Stanford community as a student.

Turner and Betty Brashear first came to Stanford under

more difficult circumstances. Betty’s daughter, Karen Lee

Wilson, was born in 1953 with a severe heart defect.

Faced with a bleak prognosis, Betty sought out the best,

most forward-thinking

doctors in the country—a

search that led her and

Karen to Dr. Norman

Shumway, the head of

Stanford’s cardiovascular

surgery program.

“There was such a rap-

port between them,” Betty

says of Shumway and her

daughter. Karen was his

patient for more than 10

years. “She really did love

him … it was mutual. I

think he was as saddened

by her death as anyone.”

Throughout her teens and 20s, Karen fought for a normal

life. Shumway was a fighter, too: When other surgeons

gave up on heart transplantation after early failures, he

persevered. By 1981, Karen’s heart and lungs were fail-

ing, and Shumway was close to a breakthrough. Neither

one would give up easily.

Catherine Stroube Hazlett, ’40, near her home in Long Beach, California

Car

olyn

Sw

anso

n

Turner and Betty Brashear

Karen Lee Wilson

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2

gooD counsel

By Jennifer rowe

AssociAte Director of PlAnneD GivinG

A s Catherine Hazlett and the

Brashears learned (see previ-

ous story), a charitable gift annuity

can help you attain a stable stream

of income for life while you create

a lasting legacy with Stanford.

My colleagues and I can assist you and your advisors in

establishing a gift annuity with Stanford. The details vary

depending on your goals, but all gift annuities have the

same basic structure:

1. Both you and Stanford sign a gift annuity contract.

2. You transfer cash or publicly traded securities

(minimum $20,000) to Stanford.

3. You receive an income tax deduction. You may also

save on capital gains taxes. The gift counts toward The

Stanford Challenge and your reunion campaign (if appli-

cable), and you are invited to join the Founding Grant

Society (see back page).

4. Stanford pays you (and/or another named beneficiary)

a fixed amount each year for life. The payment amount is

based on a rate determined by the age of the annuitant(s)

at the time the annuity is established (see chart). For

example, if a 65-year-old donor establishes a gift annuity

for herself with a gift of $50,000, her annual payment

would be $3,000 (6 percent of $50,000). Typically, a por-

tion of each annuity payment is tax-free.

Stev

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Jennifer Rowe

Recent estate gifts

Stanford is grateful to the generous alumni and friends who remembered the university in their estate plans. These gifts make a difference across the university. A sampling of recent gifts received from estates appears below.

eDwin BormAnn, ’34, mD ’38, directed a portion of the residue of his trust estate to the School of Medicine for research. His gift totaled $3,189,473.

iDA P. cArter, a friend, made a bequest of $100 plus a portion of her trust residue to Stanford Hospital. The hospital received $18,088 for its unrestricted use.

Antoinette Howell, a friend, provided $2,180,000 from her estate residue to fund the purchase of rare books for the Cecil H. Green Library. She also left her own book collection to the university.

normAn w. KAvAnAuGH, JD ’53, left a gift of $5,000 to Stanford Law School.

JAmes H. scHwABAcHer, Jr., a well-known opera singer and teacher who attended Stanford in 1943, donated his personal papers and recordings to the Braun Music Center’s Music Library and Archive of Recorded Sound.

Kurt servos, who taught geology at Stanford in the 1950s, made a specific bequest of his IBM stock, valued at $39,442, to the Branner Earth Sciences Library to support acquisitions in the fields of mineralogy, crystallography, or volcanology.

crAne JoHnson, ’49, assigned to Stanford the copyright and all other rights to his 1974 play, Dracula. This adaptation of Bram Stoker’s classic novel had a successful run on Broadway and is still produced in regional and community theaters across the country.

Henry e. mADson, a friend, left a residual bequest valued at $212,078 to Stanford University Medical Center for cardiac research.

cHAnDler o. meyer, a friend, arranged for part of his trust estate to come to Stanford after it was used to support his wife and son. His gift, totaling $281,289, has established a fund to benefit graduate students in the math-ematics department.

milton JAmes rensinK, ms ’71, named the School of Engineering as the beneficiary of his Keogh retirement account, resulting in a gift of $432,634. In addition, the Department of Electrical Engineering will receive a portion of the residue of his estate, resulting in an estimated gift to the department of more than $2 million.

5. When the gift annuity ends upon the death of the benefi-

ciaries, its remaining principal is then available to Stanford

to be used in the manner you’ve designated.

There are several variations on this structure that help

donors meet individual goals. If you want to learn more

about gift annuities or other life income gifts, please con-

tact the Office of Planned Giving at 650.725.4358. v

Please Note: Lower rates will go into effect on July 1, 2008. To take advantage of the rate structure below, be sure to act before June 30.

Rates shown are for a single life annuity and are approved by the American Council on Gift Annuities through June 30, 2008. If you want to include your spouse/partner as an annuitant, please contact the Office of Planned Giving or use our online calcu-lator, plannedgivingcalculator.stanford.edu, for current one- and two-life annuity rates.

AGe rAte AGe rAte

55 5.5% 73 6.8%

56 5.6% 74 6.9%

57 5.6% 75 7.1%

58 5.7% 76 7.2%

59 5.7% 77 7.4%

60 5.7% 78 7.6%

61 5.8% 79 7.8%

62 5.9% 80 8.0%

63 5.9% 81 8.3%

64 6.0% 82 8.5%

65 6.0% 83 8.8%

66 6.1% 84 9.2%

67 6.2% 85 9.5%

68 6.3% 86 9.9%

69 6.4% 87 10.2%

70 6.5% 88 10.6%

71 6.6% 89 11.0%

72 6.7% 90+ 11.3%

StaNford Charitable Gift aNNuity rateS

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Cou

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Milton Rensink, MS ’71

C r e a t i n g a L e g a c y

C H A R I T A B L E E S T A T E P L A n n I n G & T A x T i p s • s p r i n g 2 0 0 8

S ta n f o r dS ta n f o r dRememb e Rf 2

for more information about gift planning at stanford, please visit our Web site at http://rememberstanford.stanford.edu or contact the Office of Planned Giving: Toll-free: 800.227.8977, ext. 54358 (USA) International: 001.650.725.4358 Fax: 650.723.6570E-mail: rememberstanford@stanford.edu

CO

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By

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Office of Planned Giving

Stanford University

Frances C. Arrillaga Alumni Center

326 Galvez Street

Stanford, CA 94305-6105

Nonprofit Org. U.S. Postage

PAidPermit No. 28 Palo Alto, CA

the founDing gRant society

The Founding Grant Society recognizes and honors those extraor-

dinary individuals whose estate and life income gifts will provide

future support for Stanford, including the School of Medicine, Stanford

Hospital & Clinics, and the Hoover Institution. According to its charter,

the society “is intended to convey to those whom it honors that in so

acting, the Stanfords’ university also becomes their university, and that

each individual act of support reaffirms the Stanfords’ promise to chil-

dren of the future … that it will be better, that they are needed to make

it better, and that a legacy of education will serve them more than any

other.”

The society is open to all those who provide support for Stanford in

their estate plans, through wills, trusts, life income gifts, IRAs, retire-

ment plans, life insurance policies, and other vehicles. Membership does

not involve dues or obligations of any kind, and membership informa-

tion is never shared with other organizations.

The university holds special events for Founding Grant Society mem-

bers, including student performances and lectures delivered by the uni-

versity’s top scholars. Members who have given permission to list their

names are also recognized from time to time in Remember Stanford and

in other publications. If you think that you may qualify for member-

ship in the Founding Grant Society and would like to join, or would like

information about member events, please contact the Office of Planned

Giving at 800. 277.8977, ext. 54358 or 650.725.4358. v

tAx tiPs now that the 2007 tax season is over, it’s not too soon to start planning for 2008:

• The irs discount rate used to calculate the gift and estate tax deduction for charitable lead trusts is close to a historic low, so this is an excellent time to set up a lead trust that supports Stanford currently and provides for a future transfer to heirs (usually children) in a way that minimizes or even eliminates gift and estate tax.

• The irA contribution limit for 2008 has increased to $5,000 annually ($6,000 if you are 50 or older).

• High-income taxpayers can keep more of their personal exemptions and itemized deductions in 2008. Limits on deductions are reduced from 2007 levels and are scheduled to be complete-ly eliminated by 2010.

• new in 2007, still important in 2008: Contributions to charitable organizations are only deductible if you keep a written record of the donation. If you need a replacement copy of a receipt for a gift to Stanford, please contact the Office of Gift Processing at 650.725.4360.

• The provision that allowed for tax-free trans-fers of IRA distributions to public charities expired at the end of 2007. As this issue goes to press, Congress is considering plans to renew and extend this provision.