Gift Planning
Planned Giving
Find out what types of assets make the best planned gifts. Learn about gifts of cash, securities and property.
Bob and Mary Are Giving Smarter and Achieving Their Dreams...Find Out How You Can Too!
Bob and Mary first met at Two-Bit Flicks, a 25-cent movie night held on Fridays in Brighton Lecture Hall. When the spring formal hosted by the women's dorm came around, Mary asked Bob to go with her. It was their first "official" date.
The rest, as the saying goes, is history. Or in Bob and Mary's case, it is natural history. That's because Emporia State also introduced them to a lifelong passion for the natural sciences.
Bob and Mary feel Emporia State was the catalyst for the life they've built together. Mary became a science educator for 6th, 7th, 8th and 9th grade students. Bob founded and served as director of the Great Plains Nature Center and became a renowned nature photographer.
Now they want others to have the same opportunity they did. They want to help students come to ESU and discover a passion they can follow for the rest of their lives.
Bob and Mary found a simple and easy way to achieve this dream. When they set up their trust, they named Emporia State as a beneficiary.
What's your dream?
Learn how easy it is to make your dream a reality by naming Emporia State University in your will or trust. Contact Angela Fullen, Director of Planned Giving at the Emporia State University Foundation. She can answer your questions or help you get started. If you have already named Emporia State in your will or trust, let us know. We will make sure your gift does everything you want it to do.
"I would encourage anyone, if they are thinking about doing something like this, to contact the Foundation. For us, it has been a great experience." - Mary Butel
Getting Started is Easy
Not sure how to take the first step? We've got just the thing you need. Download your free Will and Estate Planning Guide. This guide is an easy way to get started on, or update, your estate plan. It will help you explore your options at your own pace. It's free, easy and yours to keep.
Download your copy today or contact Angela Fullen to request a printed copy.
Angela Fullen
Director of Planned Giving
Telephone: 620-341-6465
[email protected]
Case of the Week
Lead to Remainder Double Charitable Trust
Case:
George Green was a man of humble beginnings. He was born in Nebraska and lived with his parents on their farm. George was a diligent student and was determined to become a successful business owner. George applied to several colleges and was accepted as a work-study student at a state college. He lived in the dorm and worked nights in the cafeteria. On weekends, he moonlighted as a waiter at a five-star restaurant.George was both resourceful and determined to succeed. He started by buying a fixer-upper in a modest neighborhood and spent nights and weekends renovating, painting and repairing it. After everything was finished, he sold the house at a profit and hired two assistants. Within two years, George was regularly buying and renovating buildings. He also started to build homes and commercial buildings. Over the years, he continued to build and gradually acquired several valuable commercial buildings.
Early in his career, George met and married Linda. They raised two children, Susan and Clifton. Linda is a strong supporter of a local charity. George is now on the board and would like to help with a major project. The project will require a gift of $2,000,000 (structured as $200,000 per year for ten years) and will be named the Linda Green Center. George also wants to pass an inheritance on to their children Susan and Clifton.
As George and Linda discussed the inheritance with their attorney, Sharon, he noted, "We started with nothing. I want to give Susan and Clifton a good income, but no principal. I wish to avoid any estate tax. I support my government, but over the years I have faithfully supported my government!"
Question:
One of their properties is a $4 million commercial building. It is fully leased with fixed payment leases. George wonders how to use this building to achieve his objectives. How can he fund the Linda Green Center and provide lifetime income for their children with no estate tax?Solution:
Sharon ponders the problem and responded, "George, I think that I have a solution. Let us consider a double charitable trust. We can transfer the building into a charitable lead trust and pay $200,000 to your favorite charity for ten years. After that time, the building can be placed in a two-life remainder trust for Susan and Clifton."George responded, "Seems like a good idea. But tell me more about how it will work. How much is paid to our favorite charity? How much will Susan and Clifton receive?"
Sharon continued, "Your building is transferred into the ten-year lead trust. With very low interest rates, your lead trust produces a great gift tax deduction. The 5% net income from the building is paid to your favorite charity for ten years. That equals the $2,000,000 gift for the Linda Green Center. When you fund the trust, there is a charitable deduction and with your gift exemptions, you will pay no gift tax. After ten years, the building is projected to increase in value to $5.1 million. The lead trust then distributes it to a 5% charitable unitrust for the lifetimes of Susan and Clifton. In the unitrust, the building can be sold tax-free and the proceeds reinvested. With $5 million (net after sale costs) in the unitrust, the 5% payout is about $250,000, so each child will receive $125,000 per year for life. If the unitrust increases in value, their income will also increase. Over their lifetimes, Susan and Clifton each may receive over $5 million."
George and Linda were delighted with Sharon's plan for the double lead trust-unitrust. He exclaimed, "Linda and I love this plan! It helps build the Linda Green Center and still provides a fine lifetime inheritance for our children. Plus, we will have other assets to leave in a bequest to our favorite charity."
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