You can choose a variety of ways to make a planned gift to Western Kentucky University and make a significant impact upon the University’s goals of teaching, research and public service while allowing the personal satisfaction of supporting WKU. It is important to find the method that best meets your needs while also accomplishing your wishes. We hope this information provides assistance in structuring the most appropriate planned gift for your individual situation. For additional information, click here.

Gifts of Retirement Plans/Individual Retirement Accounts
You may designate the WKU Foundation as the death beneficiary for pension plans, Individual Retirement Accounts (IRAs), 401(k) plans, Keough plans and other qualified retirement savings plans. Gifts of retirement death benefits have tax advantages that include the avoidance of income taxes and estate taxes that would come due upon death.

IRA Qualified Charitable Distributions (QCD)
IRA owners ages 72 and older must begin withdrawing from their retirement plans. In lieu of taking the required minimum distribution (RMD), which is generally 100% taxable, individuals may make charitable gifts directly from their IRAs of up to $100,000 annually. Income tax deductions are not available for IRA QCDs, but the distribution passes to the charitable entity tax free.

Gifts of Life Insurance
Naming WKU as the owner or beneficiary of a life insurance policy entitles you to a deduction equal to your cost basis in the policy or its replacement cost, whichever is less. A policy that was originally purchased to provide protection for dependent children, or as part of a business partnership, often provides an excellent giving opportunity once that specific need has passed.

Gifts Through Bequests
A bequest in your will offers an opportunity for a gift to WKU, as well as a convenient way to put your property to good use after you no longer need it. You can include a gift in your original will or as a codicil added by your attorney at a later date. Testamentary gifts through wills are easy and typically deductible for estate tax purposes. Options include:

Specific Bequest
A certain percentage of your estate, a certain dollar amount, or particular securities or other assets given to WKU.

Residuary Bequest
All, or a portion, of your estate given to WKU after the distribution of specific amounts to other beneficiaries.

Testamentary Charitable Trust
The establishment of a unitrust or annuity trust for the benefit of specific beneficiaries through your will, with the trust principal transferred to WKU after the death of the last trust beneficiary.

Charitable Gift Annuities
A charitable gift annuity provides a contract in which you exchange a gift of cash or marketable securities such as stocks or bonds (including mutual funds) to the WKU Foundation. In exchange, you and/or your designee will receive fixed payments for life. The payment does not fluctuate with the economy, so the amount of income is known.  What’s more, there are no investment worries because the Foundation guarantees the annuity payments until death. Benefits include:

• Income payments for your life and/or the life of your spouse or others.
• Probable elimination of capital gains tax on appreciated property.
• A current income tax deduction.
• Probable reduction of estate taxes and probate costs.
• Personal fulfillment of directing your gift and supporting WKU during your lifetime.

Charitable Remainder Trusts
A charitable remainder trust provides income to you and/or other beneficiaries for life or a set term of years, leaving the remainder to the WKU Foundation at the end of the trust.  

The flexibility of a charitable remainder trust allows you to design an arrangement specifically suited to your needs and to use various types of property in its funding. You may choose from two basic types of charitable remainder trusts: the unitrust and the annuity trust.

Both the unitrust and the annuity trust must pay at least 5 percent of the initial fair market value of the gift, and both may be established for a minimum of $100,000. Your income tax deduction is based on the amount of the gift, the ages of the beneficiaries and the percentage of the trust assets received as income.

In addition, you can structure either a unitrust or an annuity trust for a certain term of years or for life. Such an arrangement is often used while children are in college and extra income is needed.  Benefits include:

• Income payments for your life and/or the life of your spouse or others.
• Probable elimination of capital gains tax on appreciated property.
• A current income tax deduction.
• Probable reduction of estate taxes and probate costs.
• Personal fulfillment of directing your gift and supporting WKU during your lifetime.

Charitable Lead Trust
A charitable lead trust provides income to WKU for a set term of years, after which the remainder may be transferred to your family or heirs. A lead trust most often becomes part of a sizeable estate plan, with advice provided by legal and tax advisors with experience in the application of lead trusts in estate planning. Benefits include:

• You receive a charitable deduction for the University’s interest income.
• You may pass property to family members at a greatly reduced estate or gift tax cost.