Legacy Society

"The Legacy Society gave me the opportunity to make smart financial decisions and give thanks to Stevens at the same time."
- Dr. Herbert M. Appleton, Jr. '44, Legacy Society Chairman

General information

The Legacy Society was started in 1994 to recognize the significant support of our alumni and friends who have made gifts to Stevens through their estate plan.

Since Stevens was founded by a bequest in 1870 from Edwin A. Stevens, it seems only fitting to recognize the support given by these thoughtful individuals.

There are many ways to help Stevens while providing for your family and taking advantage of tax provisions that may even increase your available income.

Below you will find some information that we encourage you to discuss with your advisors. Stevens is happy to provide additional information, at your request, about any of these opportunities and to help structure a gift of long-term significance.

In all cases, there are special advantages to using appreciated securities to make your gift. Your gift will count toward your class total and can be directed to a special fund (e.g., a class scholarship fund, faculty chair, etc.)

We encourage those who have made such provisions for Stevens to inform us so we may thank them, and with permission, add their name among our Society members.

Bequests

The simplest way to help Stevens through your estate is to leave a bequest in your will. Stevens can be named as a beneficiary either by percentage or specific amount. Stevens' full legal name is "The Trustees of the Stevens Institute of Technology" and if your attorney would like sample language, we are happy to provide it.

Stevens can also be named as the beneficiary of your retirement plan - this is usually done directly with the company that manages your fund. Since these assets are subject to income tax and potentially estate tax when left to theirs, retirement assets are especially attractive to leave as bequests.

Click here to read our recent edition of FORESIGHT devoted to "The Will Behind the Will "

Pooled Income Funds

A Pooled Income Fund works very much like a mutual fund. A gift to our Castle Point Pooled Income Fund 'buys' units of the fund and pays quarterly dividends to the income beneficiaries. At the death of the income beneficiary, Stevens receives the value of the shares. Low-yielding, highly appreciated securities are a favorite asset to give since the donor can claim a charitable deduction for part of the gift and receive increased income in many cases (in 1997 the rate of return was 8.71%). A minimum gift of $5,000 can initiate participation in the fund, and subsequent additional gifts of $1,000 are accepted.

Charitable Gift Annuities

A gift annuity is a contract between a donor and Stevens and guarantees a payment for life (and the life of your spouse, if you wish) in exchange for a gift. Stevens' rates follow those recommended by the American Council on Gift Annuities (The most current rates: www.pgcalc.com/support/support1a.htm) and are based primarily on the age of the annuitant. Gift annuities are very attractive because part of the income generated can be tax-free. A minimum gift of $10,000 is required to establish a gift annuity.

Here's an example of a Charitable Gift Annuity:

Donor age 75 funds a $10,000 gift annuity with cash. He/She receives an annual income of $710 (7.1%) of which $460.08 is tax free. The gift also generates an income tax deduction of $4296.70.

These payments are a general obligation of our organization, and they are backed by all of our assets. At June 30, 2002 our total invested funds exceeded $110 million, and they are invested in stocks, bonds, real estate, mutual funds, short-term investments and limited partnerships. We also maintain a gift annuity reserve fund valued at more than $1,000,000 that is invested in accordance with the laws of the states in which we offer gift annuities.

A terrific retirement planning tool for younger people is the Deferred Payment Gift Annuity. In this case, you elect to begin payments at a later date, say beginning at age 65, while claiming a deduction now. This is a great way to add to your available retirement income, especially if you are already contributing the maximum amount to your retirement plan.

With a gift annuity, you simultaneously make a charitable gift and provide guaranteed payments for life to yourself and/or another person. The fact that you are making a charitable gift may entitle you to income, gift, and estate tax deductions. However, because a charitable gift is involved, the annuity rates offered by Stevens Institute of Technology are lower than those available through commercial annuities offered by insurance companies and other financial institutions.

Charitable Trusts

Charitable Trusts are also an excellent way to tailor a life income arrangement and make a substantial contribution to Stevens' long term future. There are two basic types of charitable trusts. An Annuity Trust pays a fixed percentage income to the beneficiary. The payment amount is established at the time the trust is established and does not change -- no additions are possible. A Unitrust is revalued each year (so additions are allowed) and the percentage payout is applied to the new value each year.

Asset Management

Stevens is happy to serve as Trustee of a charitable trust for which the university is an irrevocable beneficiary of at least 50% of the remainder. Stevens, of course, complies with the Prudent Investor Act adopted by many states, including New Jersey (1997). These assets are under the management of the Bank of New York.

Planning Considerations

Determining what method is best for you requires weighing many elements.

• The expected length of the term of the trust (are the beneficiaries young?)
• Is your goal maximizing available income?
• Is income not as important as maximizing the available charitable deduction?
• What is the most advantageous asset to use in order to make this gift?

Our Mission

In discussing these and other issues with potential donors, we strive to understand their needs and expectations. Our aim is to help individuals accomplish their philanthropic goals in a way that makes the most of tax-favored arrangements. We are prepared to assist and are willing to work with advisors to evaluate various gift plans.

If you would like to estimate the benefits of a particular planned gift, click here to visit GiftCalc, a new service provided to you free of charge.

Other resources: IRS Tax Forms, Martindale-Hubbell Lawyer Locator, Gift Law

Contact

More information, or confidental illustrations with no obligations, can be obtained by contacting:

Michael McGarry
Director, Gift Planning
+1.888.SIT.5228 (+1.888.748.5228) or +1.201.216.5226
+1.201.216.8247 fax