Impact Stories

Grateful Alumnus Makes a 'Deeply Satisfying' Gift

Penn State campus

Impact Stories

Grateful Alumnus Makes a 'Deeply Satisfying' Gift

Sheldon Chaiken smiling

Sheldon Chaiken created his Penn State legacy using a charitable trust.

It was as a Penn State undergraduate that Sheldon Chaiken first acquired the passion for excellence that later defined his career in the financial services industry.

"I was content to go along and get along," he says. "But my Penn State professors inspired me to really push myself and see what I could achieve."

Now, as the retired senior vice president of Paine Webber, Sheldon is delighted to give back to his alma mater.

"It is deeply satisfying to know that I can make a difference for future generations of Penn State students, and it's simply the right thing to do-to give back to those who have given so much to
me," he says.

By remembering Penn State in his estate plans, Sheldon hopes to benefit the University and some of its most ambitious students for many years to come. Working closely with the Office of Gift Planning, he created a charitable remainder unitrust (CRUT) that will one day fund scholarships for students in the Schreyer Honors College.

"I found the CRUT to be a very effective estate planning device for myself, my heirs, and the University," he says.

His wife, Gail, perhaps best expresses the Penn State pride that drove Sheldon's professional success and motivated his philanthropy.

"If you could hear Sheldon talk about Penn State, you'd get chills down your spine," she says. "He is who he is because of Penn State, and he has a great love for the University."

If you're interested in learning more about CRUTs and how this type of gift could benefit you and the University, please contact The Office of Gift Planning at 888-800-9170 (toll free) or giftplanning@psu.edu.

A charitable bequest is one or two sentences in your will or living trust that leave to Penn State University a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

"I give to Penn State University, a nonprofit corporation currently located at c/o Office of Gift Planning, 329 Innovation Boulevard, Suite 313, State College, PA 16803-6606, or its successor thereto, ______________ [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to Penn State or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.

Securities, real estate, or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property, or undeveloped land.

A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to Penn State as a lump sum.

You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to Penn State as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and Penn State where you agree to make a gift to Penn State and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.

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