You may desire to make a substantial gift to Murray State but still have need for income from the funds, securities, or other property you wish to donate. Through one of several life income plans, you may retain an income for life for yourself and a loved one and still give the assets to the University.

Life income plans include the gift annuity and deferred gift annuity, the charitable remainder unitrust and the remainder annuity trust. While each plan has its own unique features, they are all similar in several important aspects.

Through an income producing planned gift you can:
* make a generous gift;
* take an income tax deduction at the time the gift is established;
* avoid paying tax on any appreciated property used to establish the gift; and
* receive an income for life (and/or the life of another designated beneficiary).

A life income plan may also be established through your will, thereby providing income for your heirs with the assets eventually going to the Murray State University Foundation.

A life income plan can be an important part of your retirement and estate planning. If one of the following plans interests you, you might want to discuss it with your financial adviser. The staff of the Office of Development is available to work with you and your advisers to design a plan that best meets your needs.

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You not only qualify for a tax deduction in the year the gift is established (excess deductions may be claimed over a period of the next five years), but a portion of your income is not taxed at all for a period of years. If stocks or other appreciated assets are used to fund the gift annuity, the realized capital gains can generally be reported over a period of time equal to all life expectancies involved.

The size of the payments for your gift annuity depends on the age of the annuitant at the time the gift is made. The older the recipient(s) of the annuity income, the larger the payments.

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Even if you have "maxed out" your 401(k), 403(b) or other retirement plans, you can still supplement your retirement benefits and get a charitable deduction on your income taxes and provide a gift to Murray State.

Establishing a deferred gift annuity is easy to do and only involves a simple document. The rate to be paid when you start receiving payments depends on your age when the gift is made and on how many years will pass before you want to start receiving the quarterly payments. However, the tax benefits are immediate. You will receive a charitable deduction, equal to the present value of Murray State's remainder interest, in the year the agreement is made.

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Your payments can be a welcome supplement to your retirement plan. Or, you can establish a trust to benefit other loved ones: for example to fund grandchildren's educations or assure the financial situation of elderly parents. You also will have the security of knowing that your assets are being managed.

You will benefit from the charitable deduction in the year the trust is created, and if you use appreciated assets to fund the trust you avoid tax on the increase in value. At the end of the term of your trust, the remainder is used by Murray State for the purposes you have specified.

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The percentage of payout on the Unitrust assets is determined at the time the trust is established. Each year the trust is appraised, with the income based on the annual appraisal. When the value of the trust increases, so does the income.

Unlike the Annuity Trust, donors can make additions to the Unitrust, creating even greater flexibility in retirement planning.

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