How to Plan a Gift for FHSU

There are a variety of ways to support Fort Hays State University through effective estate planning.

Gift Annuity:A charitable gift annuity is a simple contract between you and the FHSU Foundation. You transfer cash or other liquid assets, such as stocks and bonds, to the FHSU Foundation in exchange for guaranteed regular payments for life. The amount of each payment is determined, in part, by your age at the time the annuity contract is signed. The older the annuitants are at the time of the gift, the greater the fixed income the Association can agree to pay. Married couples can choose to have a separate annuity for each spouse so both will enjoy payments for life.

Bequests: Making a gift through your will provides you with control of your assets throughout your lifetime and becomes an ultimate gift to the Foundation. Almost anyone who makes a will can name a charitable institution for a bequest without adversely affecting his or her family's financial security. Consider naming the FHSU Foundation to receive a certain amount, percentage or to receive the "residue" of your estate. There are no immediate tax advantages although a bequest may reduce estate taxes if applicable.

Charitable Remainder Trusts:Charitable trusts are a form of giving through which you can enjoy significant tax savings while helping Fort Hays State University. The trust pays you or your beneficiary on an annual basis for life. One type is a charitable remainder annuity trust, which pays you or your beneficiary a fixed amount annually, regardless of the trust’s investment performance. In a charitable remainder unitrust, you receive a set percentage (which is determined at the outset depending on your personal needs and situation) of the value of the trust assets. This value is redetermined each year, which provides you with protection against inflation. In both trust types, you may stipulate that the remainder of the trust goes to the FHSU Foundation. Aside from tax deductions, other benefits of establishing a charitable remainder unitrust include freedom from investment worries and avoidance of capital gains tax on the assets you use to fund the trust.

Note that you may arrange for either type of trust to become established after your death. You arrange in your will for either a testamentary annuity trust or a testamentary unitrust. These trusts give your beneficiaries the expertise of a trustee and save on estate taxes.

Charitable Lead Trust: The lead trust is a flexible plan and can be one of the few ways to control exactly when an inheritance is received, while reducing or eliminating taxes and probate expense that might otherwise be due on assets left to your heirs.

Under the terms of the lead trust, assets are transferred to a trust that pays income to the FHSU Foundation for a number of years you determine. At the end of the period, the assets are returned to you or transferred to others you name. You may also arrange in your will for a lead trust which will provide a specific income to the FHSU Foundation for a set number of years and then return all trust assets to your named beneficiary. This method also reduces estate taxes.

Life Estate: A good way to make a gift and take advantage of the appreciated value of your home or farm is to enter into a life estate agreement with the FHSU Foundation. You continue to use the property throughout your lifetime, receive an immediate tax deduction and avoid taxation on gains in addition to reducing possible estate taxes. FHSU benefits from the ultimate use or sale of the property.