“I give Jerilyn the credit,” says Clifford Marr, MD, a member of the Albany Medical College Class of 1974, when he reflects on what led he and his wife of 43 years to create an endowed scholarship which will be funded with a bequest of IRA assets.

Clifford entered Albany Medical College in 1970 at the age of 20, just three days after he and Jerilyn were married in New York City. His parents happily covered the nearly $3,000 annual tuition, and to make ends meet, his wife, who holds a master’s degree in biology from Boston College, took a job performing tissue culture research at Albany Med, then later taught anatomy and physiology at Hudson Valley Community College. While Clifford strived to build and sustain a pediatric surgical practice in Sacramento, CA, Jerilyn raised their three daughters. The practice is now a part of Sutter Health and serves as the Division of Pediatric Surgery in the Department of Surgery of the UC Davis Health System. Clifford turned 64 this year, and together the pair contemplated the next phase of their lives.

Financial and Gift Planning Information from Albany Medical Center

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Volume 5Number 2Winter 2013

Inside This Issue:• Page 2: Designate your assets and help others• Page 4: A tax-wise way to support our work

“Jerilyn pointed out that we have been so fortunate in our lives, it was now time to give back,” he says. “We hope other people who reach this stage in their careers will also consider a gift to the Medical Center to help them continue training physicians and providing exceptional patient care.”

Partners in PhilanthropyDr. Clifford and Jerilyn Marr Create a Scholarship

When Jerilyn and Clifford Marr, MD, learned about the tax consequences of giving their IRA assets to family, they chose instead to use the assets to fund a scholarship for Albany Med students.

1974 Today

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Designate Your Assets and Help OthersIf you are looking for an easy way to support Albany Medical Center, but can’t part with assets today, consider designating us as the beneficiary of your retirement plan assets or adding a bequest to your will. These two gift types offer peace of mind because your plans can be altered at any time.

Retirement plan assets make a tax-wise gift to Albany Medical Center. If your children are the beneficiaries of your retirement plan assets, federal income taxes may erode nearly 40 percent of the amount they receive from your plan. In contrast, as a nonprofit organization, we are tax-exempt and eligible to receive the full amount and bypass any federal taxes. To name Albany Medical Center as beneficiary of these assets, contact your retirement plan administrator or insurance company for a change-of-beneficiary form. Complete the form and return it to your plan administrator. It’s that simple! A bequest in your will or living trust allows you to give a certain amount of cash, securities, or

property, or you can give a percentage. If you choose to give us a percentage of what is left of your estate after other beneficiaries have received their share, your gift will remain proportionate to the size of your estate, no matter how it fluctuates. After your lifetime, Albany Medical Center will use your gift to support our lifesaving work. Your estate planning attorney can help you structure a gift to us so your loved ones will also be taken care of after you’re gone. Just a few simple sentences, called bequest language, in your will or living trust are all that is needed. Here is our sample bequest language:

I, [name], of [city, state ZIP], give, devise, and bequeath to Albany Medical Center Foundation [written amount or percentage of the estate or description of property] for its unrestricted use and purpose.

For More InformationWe are happy to help with ideas as you prepare to consult an estate planning attorney. Contact Laura O’Brien at (518) 262-6835 to begin a confidential conversation today.

Find the Gift That’s Right for YouIn order to know which type of charitable gift best meets your current and future needs, it is beneficial to understand the different charitable gifts and the benefits associated with each. Our two complimentary brochures can help. Simply return the enclosed survey to receive Your Personal Guide to Gift Planning and Make Your Final Wishes Come True.

Partners in PhilanthropyDr. Clifford and Jerilyn Marr Create a Scholarship

The couple had accumulated retirement assets in their IRA accounts. They met with their tax advisor who explained there can be significant tax consequences when the assets in an IRA are passed on to beneficiaries. They also learned that any portion assigned to charitable organizations would not be taxed, while the portion of the IRA divided among their three grown daughters would incur burdensome inheritance taxes.

Great Minds Think AlikeClifford says it was Jerilyn’s idea to create the Marr Endowed Scholarship by naming Albany Medical College a beneficiary of the couple’s IRAs. “She saw the need to assist students with the high cost of tuition. We both wanted to help increase the medical college’s endowment,” he says. The Marrs had learned scholarship is the highest funding priority of Albany Medical College Dean Vincent Verdile, MD, and also how important charitable gifts are to the continued success of Albany Medical Center. Clifford also stipulated that their charitable gift would be dedicated in memory of Samuel Powers, MD, a professor of surgery and Clifford’s mentor at Albany Med. “Dr. Powers was totally approachable and easy to talk to,” he recalls. Before medical school, Clifford earned a bachelor’s degree in mechanical engineering at MIT and he felt a kinship with Dr. Powers, who collaborated with engineering faculty at RPI to better understand the physiologic effects of mechanical ventilation on critically ill trauma patients.

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“Dr. Powers was at the forefront of the field at the time,” Clifford says. “He made me very excited about surgery.” Clifford’s experience as a medical student studying under Dr. Powers underscores the unique benefits an academic medical center provides for patients and their families. The way the Marrs structured their charitable donation appealed to Jerilyn’s philanthropic nature and Clifford’s pragmatic side. “It just made good sense to us,” he says. “I feel we were fortunate that we did not have any medical school debt because of the generosity of Clifford’s parents,” says Jerilyn, who earned a second master’s degree in health services administration and worked with nonprofit organizations, including teaching English as a Second Language to adults. “I can’t imagine having to start a career and a family with large debt. I thought we should try to help. We hope others will join us.”

If you feel inspired to make a gift in support of Albany Medical Center, please contact Laura O’Brien at (518) 262-6835 or obrienL@mail.amc.edu.☎

“�We�have�been�so�fortunate�in�our�lives,�it�was�now�time�to�give�back.�We�hope�other�people�who�reach�this�stage�in�their�careers�will�also�consider�a�gift�to�the�Medical�Center�to�help�them�continue�training�physicians�and�providing�exceptional�patient�care.”

— Clifford Marr, MD ’74

Explore the PossibilitiesVisit us at www.amc.edu/foundation/giftplanning to learn more about Albany Medical Center and how your generosity can make a difference.

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Laura O’Brien, Director, Gift Planning43 New Scotland Ave. MC119Albany, NY 12208-3478(518) 262-6835 | obrienL@mail.amc.edu

www.amc.edu/foundation/�giftplanning

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© Albany Medical Center and The Stelter Company The information in this publication is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results. If you wish to be removed from our fundraising mailing list, please contact Laura O’Brien by email at obrienL@mail.amc.edu or (518) 262-6835.

A Tax-Wise Way to Support Albany Medical CenterAre you looking to sell stock, mutual fund shares, or other property that has increased in value since you bought it? Beware of the tax you will likely owe on the capital gain. One way to resolve this issue is to donate the property to the Medical Center.

The Benefits of Giving StockIf you donate appreciated property to us that you have held longer than one year, you completely eliminate the capital gains tax. We can sell the property tax-free. In addition, you receive a charitable deduction on your income

taxes for the full fair market value of the asset up to 30 percent of your adjusted gross income, when you itemize on your tax return. If you cannot use all of the deduction in the year of your gift, you have up to five additional years to use the remaining deduction.

Consider Your OptionsThe chart, below, shows how the way you make your donation can affect your total tax savings. The example assumes you are in a 28 percent federal income tax bracket.

Fair market value of gift $10,000cash

$10,000cash

$10,000property

Cost basis of property N/A $2,000 $2,000

Long-term capital gain of property N/A $8,000 $8,000

Long-term capital gains tax ($8,000 x 15%) N/A ($1,200) due to IRS

$1,200 eliminated

Income tax savings ($10,000 x 28%) $2,800 $2,800 $2,800

Total tax savings (capital gains tax + income tax savings) $2,800 $1,600 $4,000

Net cost of gift (fair market value of gift − total tax savings) $7,200 $8,400 $6,000

GIVEN THREE WAYS Which Benefits You — and Us — More? Give $10,000

Cash to Us

Sell $10,000 in Appreciated Property and Give Cash to Us

Give $10,000 in Appreciated Property

Directly to Us

$10,000

Please contact Laura O’Brien with any questions you may have about giving appreciated property.