Class of ’54

March 2012

Dear Classmates,

We have sent you information about ways to include the Class of 1954 David C. Johnson Scholarship Endowment in your planning.  Previous letters have suggested including Gustavus in your Will or Living Trust.  Most people need to balance their generosity with current and future needs (medical, long-term care, and retirement costs).  Gifts made through your Will or Living Trust do not irrevocably commit assets that may be needed for future personal or medical needs.  By including Gustavus in your Will or Living Trust you can address both concerns.  Your future gift will only be made (a) if you do not consume all of your assets during your lifetime and (b) upon your death, all legal debts and obligations are paid.

Gustavus can also be the beneficiary of a life insurance policy or you can make a gift of the policy.  Look at the cash value in one of your insurance policies.  You might find that the cash value (your money) is almost equal to the amount the insurance company would pay upon your demise.  Giving that policy to the Scholarship Endowment might be a smart way to make a gift.

Would you like to support the Scholarship Endowment, but need the income being generated by the assets you would use to make the gift?  It is possible to make a gift and increase annual income by making an income returning gift.   The simplest life-income gift is the Charitable Gift Annuity.  You can give away the assets (tree), but retain the income (fruit)!  I learned that at our ages, a 6.3% annual annuity would pay as long as either of us lives.  The best news is that almost 83% of the income would not be taxed!!!  Sure beats the 1% CD with all of the income being taxed!!  This is truly a win-win gift arrangement.  You can fund it with either cash or appreciated assets (stock or real estate).  There is also a “College Annuity Plan” to help a young person finance a part of their education.  You, as the donor, receive a tax deduction, but income goes to the young person.  After the income period has ceased (usually about 5 years) the remainder could go to the Class of 1954 Scholarship Endowment Fund.

One of the things that we have not mentioned in previous letters is that by including Gustavus in your financial and estate planning using one of the tools described provides the added benefit of becoming a member of the Gustavus Heritage Partnership.  Partners gather once a year on the campus and are often matched with a recipient of a scholarship.  You also receive a beautiful, framed photograph of Christ Chapel taken by Anders Bjorling ’58.

As we’ve have said in previous letters, if you want more information about these giving tools, we encourage you to contact Paul Tillquist ’63 at ptillqui@gustavus.edu.  He can provide illustrations for any of the plans.

Thanks so much for your encouragement in our efforts.

Your classmate,

Paul Vollan

1954 annual Fund Chair