Messenger - Vol. 3, No. 1, Page 18
Fall 1993
Charitable remainder trust continues long-time U.D. connection

     Milman E. (Dick) Prettyman Jr., Delaware '50, and his wife, Gloria,
are long-time, loyal supporters of the University and its athletic
     Through a charitable remainder trust, the Prettymans have found a way
to provide long-term support for the University and provide for their own
retirement as well.
     The Prettymans believe the trust is a way for people who are not
necessarily tremendously wealthy to help the University and to make a much
more substantial gift than they may ever have thought possible. It made
sense to Dick and Gloria, when planning for their retirement income needs,
to consider working with the University that had helped in Dick's education
and development.
     The Prettymans held stock that had increased dramatically in value but
was not generating a satisfactory income for their retirement years.
Selling the stock to reinvest in higher income-generating assets would have
meant paying up to 28 percent in capital gains tax.
     Instead, the Prettymans were able to fund their charitable remainder
trust with some of the stock, avoid the taxes and benefit from a
substantial income tax deduction in the year their trust was established.
The trust was able to sell the stock without the capital gains tax and
reinvest in other assets designed to generate a higher income for the
Prettymans during their lifetimes. The Prettymans were able to meet the
$100,000 generally required by the University for a charitable remainder
trust with assets representing a relatively small cash investment made many
years earlier.
     Dick and Gloria feel this approach allows them to give something to
the University, gain an income stream for their lifetimes and have the
advantage of the University's expertise in managing the trust. Because the
gift will become part of the University's endowment, the Prettymans will
continue their relationship with the University years after they are gone.
     The Prettymans have designated that the funds ultimately remaining in
the trust be used by the University for maintenance of the Bob Carpenter
Sports/Convocation Center. Dick's father, Milman E. Prettyman Sr., Delaware
'26, attended the University on an athletic scholarship and his daughter,
Michelle, Delaware '81, was a member of the University's swim team.
     As long-standing residents of Newark, the Prettymans have watched the
University grow and the campus expand.
     "It's been a pleasure to have been here and to have been involved in
this evolution," Prettyman says. "We are proud of the University of
Delaware. Its contributions to our community have enabled us to enjoy many
friendships and allegiances over the years. We hope this donation shows in
some way our appreciation for all that has been given to us. By sharing
this information, maybe others will find it mutually beneficial to consider
a charitable remainder trust with the University."