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Charitable trusts

Looking for ways to give K-State a significant gift? If you have built up a sizable estate, you may want to check out the advantages of setting up a charitable trust. There are several types of trusts — the options allow you to tailor your gift to meet your personal, charitable and financial goals.

The charitable remainder annuity trust and charitable remainder unitrust let you or other named individuals receive income each year for life or a term of years from assets you give to the trust. After the life of the named individuals or the set period of years, the balance in the trust goes to the charities of your choice.

The charitable lead trust can make payments in one of two ways. A charitable lead annuity trust pays a fixed amount each year to K-State and is more attractive when interest rates are low. A charitable lead unitrust pays a variable amount each year based on the value of the assets in the trust.

Delay your payments

If you are younger than 60 or don't need your payments immediately, you can set up a deferred gift annuity. This allows you to delay receiving payments until a later date — such as when you reach retirement. To learn more, view and download the FREE guide Plan for retirement with a deferred gift annuity.

Next steps

  1. Contact the Gift Planning team at 785-532-6266 or giftoptions@ksufoundation.org to talk about supporting K-State by setting up a charitable trust.
  2. Seek the advice of your financial or legal advisor.
  3. If you include K-State in your plans, please use our legal name and federal tax ID.

Legal name: Kansas State University Foundation
Address: 1800 Kimball Ave., Suite 200, Manhattan, KS 66502-3373
Federal tax ID number: 48-0667209

Learn how to fund it

You can use the following assets to fund a charitable trust:

Discover which type of charitable trust best fits your estate plan with the FREE guide Trusts: Choose from 2 win-win ways to donate.

View my free brochure

Calculate your benefits

Submit a few details and see how a charitable lead trust can benefit you.

Not sure how to begin planning?

Download our FREE Personal estate planning kit

Check out this potential scenario

Roger and Theresa have farmed for decades, but are ready to retire. They considered selling their final wheat crop and all their farm equipment, but did not like the idea of paying hefty income taxes. Instead, they saw a smart way to help themselves and K-State at the same time. They transferred ownership of their farm equipment and wheat to a tax-exempt charitable remainder unitrust and received an immediate federal income tax charitable deduction. The trust sold the farm equipment and wheat and invested the proceeds. Because the trust is tax-exempt, it does not have to pay taxes on the income from the sale. The trust is set up to pay Roger and Theresa a certain percentage for 20 years. At the end of the 20-year term, the remaining assets in the trust will pass to the KSU Foundation and will benefit student scholarships, per Roger and Theresa's request.

 

A charitable bequest is one or two sentences in your will or living trust that leave to K-State a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

"I give to K-State, a nonprofit corporation currently located at 1800 Kimball Ave., Suite 200, Manhattan, KS 66502-3373, or its successor thereto, ______________* [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to the KSU Foundation or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset — such as real estate or stock — since its original purchase.

Securities, real estate or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, farm, commercial property or undeveloped land.

A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets — and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to K-State as a lump sum.

You fund this trust with cash or appreciated assets — and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to K-State as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and K-State where you agree to make a gift to K-State through the KSU Foundation and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.

Personal Estate Planning Kit Request Form

Please provide the following information to view the materials for planning your estate.

eBrochure Request Form

Please provide the following information to view the brochure.