Jim Albaugh `72 President
and CEO,
Boeing Space & Communication Division
The laws of physics
dictate that a body will remain at rest or travel in a straight line
at a constant speed unless it is acted on by an external force.
This law of physical reality played a significant role in shaping
the life of Willamette alumnus Jim Albaugh '72...
[ Full
Story ]
The Bad News. If the ultimate beneficiary
of your retirement assets (e.g., your individual retirement
account (IRA), 401(k) plan, profit-sharing plan, pension plan,
or Keogh plan) is an individual, the beneficiary (even if the
beneficiary is your spouse) generally must pay income tax on
receipt of the assets. In addition, the assets are included
in your taxable estate and may be subject to estate tax if the
beneficiary is anyone other than your spouse. Therefore, if
your retirement assets pass to your children or other individuals,
up to 75% of your retirement assets could be lost to taxes.
The Good News. By designating Willamette
University as beneficiary of your retirement assets, at your
death the entire portion designated to the University will go
to support the University; no income or estate tax will be assessed
against the assets given to the University. Naming the University
as beneficiary of retirement assets generally is simple, and
usually you can make the designation merely by signing a form
supplied by your retirement plan administrator or IRA trustee.
Federal law, however, may require additional procedures for
married persons.
Lifetime Transfers
Under current tax law, lifetime contributions
of retirement assets to charities can be problematic in many
circumstances. However, President Bush and many members of Congress
have expressed support for proposed legislation that would provide
favorable tax treatment for lifetime charitable contributions
of retirement assets.
Please contact the Office
of Gift Planning at (503) 370-6022 for more information about
contributing retirement assets to the University.
The discussion above is general in nature and may not apply to all individuals. Prospective donors are urged to consult their individual tax and financial advisors concerning the specific consequences of making gifts to the University.
