Gift Planning

Personal Giving Stories

Retired Vet Uses Gift Annuity to Increase Income and Lower Taxes

kern.jpgDr. Robert Kern graduated from the College of Veterinary Medicine's fifth-ever graduating class. It was 1956 when he and 28 other students said "so long" and went their separate ways. It was a close-knit group and their friendships have remained strong. "It was a very small school, and everyone knew each other. There were good friendships all the way around," Kern recalls.

After graduation, Kern, who specialized in equine medicine, worked at the racetracks in East St. Louis, Ill., and Collinsville, Ill., while operating a small animal hospital in O'Fallon, Ill. He worked both jobs for about 25 years, before retiring in 1985.

A few years ago, he responded to the Generations newsletter by returning the reply card attached at the end. At that time he was establishing his estate plans and knew he wanted to help his alma mater in some way. "I had a feeling that I should do something good, and the veterinary school came to my mind," Kern says, "because my education made my life what it is today, so I'm just giving back to where it belongs."

To do so, he arranged for a piece of investment property to pass to the U of I Foundation at his demise. The property was going to be more complicated to deal with than the rest of his estate, so he thought it would be a good asset to give. "I want to keep the settlement of my estate as simple as possible so donating the condo to the U of I Foundation made sense. They have the resources to effectively market and sell the property to maximize its value," he points out.

Subsequent to that gift, Kern learned about the attractive financial benefits a charitable gift annuity (CGA) provides. "When I found out I could receive a 7.5 percent payment guaranteed for life, I was immediately interested," Kern recalls. Of course when he learned that his tax bill was going to go down AND that over 70 percent of his annuity payment would be tax-free, he knew he had a winner. "I would encourage anyone who wants more income and doesn't like paying too much in taxes to contact the U of I Foundation about a CGA," he adds.

Kern's CGA as well as his estate-gift provision will fund the Dr. Robert G. Kern Endowment for Veterinary Medicine, which will support equine programs at the College of Veterinary Medicine. Dr. Kern's foresight and generosity in establishing these two gifts is greatly appreciated by both the College of Veterinary Medicine and the U of I Foundation.

The U of I Foundation gift planning staff is pleased to answer your questions and offer assistance at any time. Please contact the Foundation to learn more.

 

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