Foresight
Hadley Institute for the Blind and Visually Impaired
Summer 2016
Providing for the Future through Philanthropic Planning
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"Do What You Can, When You Can"
Growing up in Chicago, Rich and Phoebe Caesar learned what it meant to work — and the meaning of money. Times were so tough when they married they couldn’t even afford a honeymoon. Rich speaks fondly of Phoebe, his late wife, as “gorgeous, strong and the boss of the house.” He calls himself “lucky because she picked me.” Phoebe was always a prodigious reader and had a marvelous voice. She used her talent by coming to Hadley twice a month in the 1950s and 1960s as a reader for the blind. She even made recordings for Hadley at home; so on the evenings she recorded, everyone in the house had to be quiet. Rich said, “Phoebe never felt this was charity, rather it was ‘doing what one is supposed to do — help others,’ plus she felt good when she could be of assistance to Hadley.”
Rich learned about helping others from none other than Danny Thomas, the famous comedian. When Rich was young, Thomas visited the owner of the company where Rich worked as a shipping clerk. He recalls Thomas explaining he was raising money to build a “hospital for disabled kids.” (This became the famous St. Jude Children’s Research Hospital.) At the time, Rich made very little money and knew he only had a couple of dollars in his pocket, telling Thomas he couldn’t afford to give more. Thomas said, “Don’t worry kid, do what you can, when you can.” He never forgot those words and has been helping others since.
Phoebe felt education was very important so, as an adult, she earned a college degree. The Carsons went on to adopt two boys from The Cradle in Evanston. As the boys grew older, she encouraged Rich to be a role model so, in his 50s he went to college and received a liberal arts degree. Rich recalls that Phoebe once gave him dog, along with a pillow that said, “Be the man your dog thinks you are.” The pillow still sits on a shelf where he sees it regularly.
Rich appreciates the work Hadley is doing, remembering us each year with a gift and has included us in his estate planning. Rich is now living in Nevada. When asked why he supports Hadley, he replied, “You need to give back, you can’t just take.” When it was time to do estate planning he felt it important to leave a legacy at the two places that meant so much to him: St. Jude and
in Phoebe’s memory — Hadley.
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Family Meetings Help Families Navigate Difficult Waters
Strong families are the building blocks for strong, thriving communities. However, all families face challenges from time to time that can make them weaker. In particular, the periods following the disability or death of a loved one are unusually stressful, and during such times families are particularly vulnerable. Family meetings are highly valuable as a tool and resource for families during periods of transition, particularly for resolving asset-related issues that may have vexed the family for decades or even generations, thus helping the family become even stronger and more resilient.
During these times of change and emotional turmoil, a fiduciary is usually entrusted with the duty to act on behalf of the disabled or deceased family member, whether appointed by the Probate Court or in accordance with the provisions of a private trust. The fiduciary is entrusted with the legal authority to make decisions for all of the interested parties, regardless of the level of enthusiasm of other family members. If the fiduciary is not able to adequately explain the steps in the probate or trust administrative processes, nor answer simple questions, nor otherwise address the concerns of all the interested family members, frustration and conflict can develop. At worst, these situations can lead to concerns about transparency and trustworthiness that are difficult to reverse and can lead to deeply rooted resentments that can haunt the family for generations to come.
Attorneys have important roles when counseling families about competing legal interests in valuable assets and property rights and should be used to convene family meetings early during family periods of crisis. As long as there are no active conflicts of interests among the family members, it is possible for one attorney to represent all of the beneficiaries of an estate or trust and, if there is a trust or a will, to use the written directions of the deceased or disabled loved one on behalf of the entire group. This helps establish understanding and confidence among everyone in a way that is productive even though the attorney works most directly with the appointed fiduciary. Circumstances may differ if another attorney is hired by a specific person, such as a disgruntled heir, in which case they also will attend the family meeting. Sometimes, other trusted advisors should be invited to attend the family meeting to keep progress moving. In many cases the attorneys or trusted advisors will reach agreement, in advance, about a mutual desired outcome of the meeting.
I have had enormous successes using family meetings to diffuse discord and to plan next steps. Gaining group consensus about something, such as determining the most important issues or points of contention, is a vital first step in resolving problems and rebuilding a strong family network. I have found it most useful to end each meeting by polling all of the interested family members to make sure that they feel that they have had a fair opportunity to be heard, to ask questions, and to receive satisfactory responses. This type of transparency and communication is vital to establish trust among all the parties involved, as well as provide comfort to the family.
Family meetings are a very effective way of getting all of the interested parties (e.g. heirs, legatees, trust beneficiaries, siblings, cousins, etc.) into the same room at the same time. The goal is to resolve the property or care issues in a way that not only leaves the family whole, but also stronger.
Linda R. Crane, Principal, Crane Law Group, P.C.
312.546.4902 |
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Win-Win for You and Hadley
By popular demand, we are expanding on a topic briefly highlighted in our winter newsletter — qualified charitable distributions (QCD) from your IRA to Hadley. The QCD, made permanent in December 2015, allows individuals over 70 ½ to transfer up to $100,000 from their IRA to a qualified charity and have it count as all or part of their required minimum distribution.
Why not just take your required minimum IRA distribution, add it to adjusted gross income and then take deductions for the charitable contribution on Schedule A to reach the same bottom line? Answer: reduction of your adjusted gross income which may result in several huge perks:
•Reduced tax bracket
•Avoid the phase-out of Schedule A deductions
•Avoid potential 3.8% surtax on investment income
•Reduce the amount of Social Security benefits subject to tax
•Avoid increase in Medicare Part B and D premiums
•Avoid the alternative minimum tax
Keep in mind, you cannot claim a charitable deduction for a distribution not included in your income, so you cannot make a QCD and claim a charitable deduction unless the distribution is in excess of $100,000, in which case the overage would be considered income and the charitable deduction applies to the excess. If you file a joint return, your spouse can also make a QCD and exclude up to $100,000 from income.
Important Points to Remember
•A transfer must be made directly from your IRA to Hadley.
•The donor must have attained age
70 ½ at the time of the distribution.
•The charity must provide an acknowledgement.
Consult your tax advisor to see if a QDC is right for you. Then, do yourself and Hadley a favor by making a QDC — a win-win all around.
Teresa Nuccio, Partner, Harrison & Held, LLP
312.621.5239 |
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Clarence Boyd Jones Society
When you include Hadley in your will or trust, you become a member of the Clarence Boyd Jones Society. Please inform us of your philanthropic planning so we may thank you for your legacy gift in support of our mission. As a member, you will be recognized in our Annual Report and on our Donor Wall (unless anonymity is requested); invited to annual events; and receive special newsletters, a gift and a certificate.
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Ways You Can Help Hadley
Consider a Charitable Gift Annuity (CGA)
A gift annuity is simply a contract between you and Hadley whereby you give a specified amount of money (minimum of $10,000 cash or appreciated stock)
A CGA provides an income for loved ones who depend on you
You receive a charitable tax deduction and the school agrees to make annual payments to one or more beneficiaries (annuitants)
Designate Hadley Institute as a beneficiary
You can use an IRA, life insurance policy, annuity or any other instrument that allows you to designate a beneficiary.
Simply request and fill out a “change of beneficiary” form from the appropriate provider.
Hadley could be a full, partial or contingent beneficiary with the designated amount being tax-free.
Include Hadley in your will or trust
Suggested wording to share with your attorney: I give ____% or $____ to Hadley Institute for the Blind and Visually Impaired, an Illinois non-profit corporation located at 700 Elm Street, Winnetka, IL 60093, EIN #36-2183809.
If you have previously included Hadley in your will or trust using our former name “The Hadley School for the Blind,” you do not need to change your documents regarding this issue. It still will be honored.
Discuss options with your financial advisor or attorney
Please let us know if you plan to leave a legacy at Hadley so we can thank you and welcome you to the Clarence Boyd Jones Society.
To receive a personalized Summary of Benefits for a CGA or for more information on estate planning, please return the enclosed envelope or contact Shari Burton, Chief Philanthropy Officer at 847.784.2765 or .
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Hadley Institute for the Blind and Visually Impaired
Formerly The Hadley School for the Blind
700 Elm Street, Winnetka, Il 60093
800.323.4238 • hadley.edu