American Association of Teachers of German

December 2006

I recently moved from Philadelphia back to Evanston IL, where I had lived as a graduate student. Many states do not honor wills made in other states, so I contacted my lawyer to draw up a new "Illinois" will.

In the course of our conversations, she asked about the AATG, which was to be included in the will, as part of the "When there's a will, there's a way" campaign. She thought that was all right, but suggested that I consider giving the money during my lifetime instead.

My first question was, of course, why? "Well," she said, "doing that would reduce the amount of your estate. Even though there are provisions in place at the moment for larger estates to be tax free, that may change. Giving now would reduce the amount so that your children might well be less burdened."

I thought that made sense, but asked if there were other reasons. "Yes," she said, "you would enjoy seeing what effect your gift has on the AATG and on those who benefit from the Endowed Scholarship Fund! You will know," she continued, "what is happening with your gift." That made even more sense.

"More?" I asked. "Well, yes," she continued, "and this is what most people like. You would be able to deduct the amount from your income taxes as a charitable gift. If the gift is too much to deduct one year, you can carry the remaining amount over into the next, or even into the second or third next year."

That made so much sense to me that I subsequently donated to the AATG immediately somewhat less than half of the total intended amount. When I need additional income tax deductions, perhaps within three or four years, the remaining amount will be given. It will have had a chance to grow between now and then, so it may well be more than just over half the total.

So, if you want to reduce your estate and possible estate taxes, see what your money is doing, and get an income tax deduction, NOW is the time to donate to the Endowed Scholarship Fund!

Karl F. Otto, Jr.
Professor Emeritus, University of Pennsylvania