Campaign Update

Benefactors’ Careful Planning Yields Impressive Results

Steve Scholer, JD’79
Director of Estate & Trust Services

“Today, I am pleased to announce that, as of Feb. 1, Creighton University has received more than $395 million in gifts and commitments to the Willing to Lead campaign.” With these words, Creighton President the Rev. John P. Schlegel, S.J., announced at the 2009 Founders Week Convocation that support from the University’s many alumni and friends had surpassed the campaign’s $350 million goal.

As with prior campaigns, deferred gifts played a key role in helping Creighton to exceed the campaign goal, and I am pleased to report that of the $395 million goal, $87 million came from deferred gifts. The foresight and planning of individuals providing these gifts not only linked their legacy with that of the University, but also helped to augment vitally needed operating support, as well as having a major impact on building the endowment.

In light of tax legislation that became effective Jan. 1, 2009, and current economic conditions, now is an opportune time to review your estate plans and beneficiary designation forms and consider a charitable bequest to Creighton. In 2009, the first $3.5 million of your estate is exempt from federal tax, up from $2 million in 2008.

The pairing of this large increase in the exemption amount, coupled with today’s current economic conditions, could have drastic, unintended consequences. Typically, a well-crafted, tax-savvy estate plan includes a provision to place 100 percent of the exempt amount in a so-called “credit shelter trust.” While this trust often provides the surviving spouse with steady income, there usually is limited access to the principal. If the majority of your assets are allocated to this trust, ultimately it could compromise your spouse’s standard of living.

Regardless of your financial situation, now is the time to evaluate your estate plan and beneficiary designation forms. The most effective way to make a significant future impact on Creighton students and programs is to name Creighton as a beneficiary of your IRA, 401(k) or other qualified retirement plan. (Retirement assets generally are subject to income taxes, regardless of the size of your estate, so they are ideal contributions.)

I encourage you to review your estate plan and to explore your dreams for the University’s future with us or with your qualified professional adviser. If you already have included Creighton in your estate, I extend my personal thanks and invite you to join the Creighton University Heritage Society — our recognition group for those who have remembered Creighton in their estate plans.

If you would like to learn more about how, through careful estate planning, your legacy can help advance the mission of Creighton University, or if you are interested in becoming a member of the Heritage Society, please call 402.280.1143 or 800.334.8794. The Office of Estate and Trust Services provides confidential assistance with your plans. It will be our pleasure to be of service.