The Office of Planned Giving at Western Kentucky University enables many donors to make substantial gifts to Western in ways that complement their personal financial planning. We welcome the opportunity to meet with you and your financial advisers to design the most advantageous ways of giving.
Many people are not familiar with the term "planned giving," It is a curious label for what really is a very straightforward field: charitable giving through bequests and trusts. Planned gifts include bequests, gifts of life insurance policies and several types of charitable trusts and gift annuities.
In addition to tailoring the gift to a specific University initiative, a gift toWestern can bring financial benefits to you. Western planned gifts generate lifelong income; convert low-yielding assets into a higher income stream at a reduced capital gains cost; obtain significant income tax deductions; and reduce or eliminate estate taxes.
Society of 1906
When you make a planned gift to Western Kentucky University, you are granted membership in the Society of 1906. The Society of 1906 is the recognition society for individuals who make Western a part of their estate plan by including a bequest to the University in their wills, by participating in any of the various lifetime income plans the University has available, by designating the University as beneficiary of a trust, by naming the University as beneficiary of retirement plan assets, or by making the University beneficiary of insurance policies of which ownership has been assigned to the University. All individuals who make planned gifts to Western are members of the Society of 1906. Individuals whose planned gifts are valued at $100,000 and above are considered Legacy Circle members of the Society.
The opportunity for "charter membership" in The Society of 1906 will be extended through 2006, Western's centennial. Charter members will be designated as such and their names will be displayed prominently in all donor listings. Membership in The Society of 1906 will be permanent, continuing year to year throughout the member's lifetime as long as the bequest or other planned gift remains in effect.
Making A Bequest
A properly planned gift can be one of the most rewarding experiences of your life. Through a simple bequest, you may be able to make a much more significant gift that will create a legacy and have a lasting impact on the students, faculty and programs here at Western. Your bequest will live on-leaving a legacy that will make a difference for many generations to come. Contact the Office of Planned Giving for information on how to include Western in your will.
Other Ways to make a Bequest
Retirement Plans/Individual Retirement Accounts
- You can simply designate Western as beneficiary of your IRA, 401 (k), Keough plan, 403 (b), or other qualified retirement.
- Gifts of these plans offer great tax advantages
- Your estate and heirs wholly avoid any estate and income taxes due from these plans at your demise
Life Insurance
- You can donate either a paid policy or simply make Western the beneficiary of an existing policy
- A no cost alternative is to make Western the beneficiary of the term policy that many peoples employers provide through the benefits package
GIFTS THAT PROVIDE LIFE INCOME
You make a life income gift to Western Kentucky University by irrevocably transferring securities, money, or other property to a trustee. The trustee may be the university, a bank, another institution, or yourself.
The trustee manages the investment of the trust assets and pays an income to you, your designated beneficiaries, or both. The income payments continue for the beneficiary's life or, in some cases, for a term of up to 20 years.
Thereafter, the remaining trust principal goes to Western to support the educational, research, or program of your choosing - in you name or in the name of someone you wish to honor.
TAX AND OTHER ADVANTAGES OF LIFE INCOME GIFTS
Donors to Western have the satisfaction of knowing that they are supporting the best in higher education. In addition, a life income gift offers added rewards:
- It pays you, your beneficiary, or both, an income for life-in many cases a larger income than the gift property is presently earning for you.
- It can offer an immediate charitable deduction.
- You can avoid capital gains tax upon sale of any appreciated assets.
- You will have an eventual estate tax savings.
- It relieves you of the burdens of asset management and enables you to support, in a major way, the Western program of your choice
Types of life income gifts
Charitable Gift Annuity
- Is a contract in which a donor exchanges a gift of cash or marketable securities such as stocks or bonds (including mutual funds) to Western in exchange, you or designate will receive fixed income payments for life.
- Offers several distinct advantages: guaranteed income for life, tax deduction savings, partial tax-free income, and potential capital gains tax savings.
- Personal satisfaction for making a gift of lasting significance.
Charitable Remainder Trust
- Provides income to you or other beneficiaries for life or a set term of years
with the remainder going to support your favorite Western program. - Allows you to design an arrangement specifically suited to your needs and to use various types of property in its funding.
- Two basic types of charitable remainder trusts: the unitrust (provides income based on fair market value of the trust) or the annuity trust ( provides a fixed percentage of the initial trust value).
Charitable Lead Trust
- Is the opposite of a remainder trust. it provides income to Western for a set term of years, after which the remainder may be transferred to you or your heirs.
- Provides a charitable deduction to you for the University's income interest and, under the proper circumstances, can allow you to pass property to family members at a greatly reduced estate or gift tax cost.
- Two basic types of charitable lead trusts: the unitrust (provides income based on fair market value of the trust) or the annuity trust ( provides a fixed percentage of the initial trust value)
Gifts of Real Estate
- You can deed your home, farm or other real estate to Western and retain use of it for your life.
- You will receive a charitable tax deduction while still enjoying the use.
- You may also receive capital gains tax savings.
If Western is part of your estate plan, please let us know. If you have been thinking of including Western in your estate plans or need further assistance, we would like to hear from you. For more information, please contact John Paul Blair, Assistant Vice President of Major and Planned Gifts, at jp.blair@wku.edu or Alex Downing, President, College Heights Foundation at alexander.downing@wku.edu or call us toll free at 1-888-WKU ALUM (958-2586).