We know K-State is important to you — that it means something to you to be part of our family. If it didn’t, you probably wouldn’t be reading this right now. But your own family means a lot to you, too. And that’s where the idea of giving back to K-State starts to seem hard, because you want to take care of your own. If you’re like most people, you probably think you can only provide for the future of one or the other. This issue of Planning for Tomorrow aims to show you how you can do both.

Trusts don’t grow moldIt’s hard to get rid of leftovers. If you have a college-aged kid home for the weekend (usually a boy), it’s not quite as difficult. Leftovers are the things no one had room for, the things no one wanted. And after sitting around for a while, they lose a lot of their appeal.

Luckily, it’s not the same with a charitable remainder trust. If you’ve never heard of one, then you’ve never heard of one of the most effective ways to provide for both your family and K-State. With a charitable remainder trust, you make a gift to a charitable organization — in this case, the KSU Foundation — where the gift is placed in a trust that will then pay you an income for life or for a period of years (not to exceed 20). If you wish, the trust can pay an income to other beneficiaries of your choice. At the death of the final beneficiary, the remaining balance in the trust goes to Kansas State.

You can design your trust to fit your own special needs. First, you decide how much you’d like to put into the trust, which will provide annual income for you or other recipients. You then decide which type of charitable remainder trust will work best for you.

Choosing a charitable remainder trust is a little like shopping for a new car — the right one depends on your personal needs. Luckily, charitable remainder trusts come in five variations.

Annuity trust — This type of trust pays you a fixed dollar amount, which works well if you want reliable income.

Standard unitrust — A unitrust pays you a variable amount equal to a stated percentage of the net fair market value of the trust assets as recalculated yearly.

Net income with makeup unitrust — This type of trust pays you only the trust’s actual income if it is less than the stated percentage of the market value of the trust’s assets (as recalculated yearly). Any deficiency, however, is made up in later years if the trust income exceeds that percentage, an effective method to build retirement income.

Net income with no makeup unitrust — You receive the trust’s actual income or a fixed percentage of market value (as recalculated yearly), whichever is less. Deficiencies are not made up.

Flip unitrust — Set up as either of the last two types, this trust converts to a standard unitrust on a triggering event, such as the sale of an asset used to fund the trust. Consider this trust if you are making a gift of real estate.

Which is better: annuity trust or unitrust?Whether you choose an annuity trust or a unitrust depends primarily on your economic outlook. If you’re concerned about the possibility of recessionary times and falling market values, the annuity trust has greater appeal. Although you can’t add to this annuity trust later in order to increase your income, you can always create a new trust for that purpose.

In comparison, a unitrust may be a hedge against inflation. The valuation can rise or fall, but over time a well-managed unitrust may offer better protection of your purchasing power than fixed dollar payments. You can also make additional contributions without the cost of creating and administering more than one trust.

Tax benefitsThere are major and wide-ranging tax savings you can realize when you create a charitable remainder trust.

First, when you fund the trust, you immediately obtain the benefit of an income tax charitable deduction. This is equal to the present value of the remainder interest ultimately payable to K-State — the older the beneficiary, the greater the charitable deduction.

You can fund your charitable remainder trust with cash, securities or other property. Highly appreciated assets that generate low current income are ideal for funding. While you’d be reluctant to sell such assets directly because of the tax you would pay on the gain, you can give them to the trust without incurring an up-front capital gains tax. The trust could sell the assets without incurring any tax and then reinvest the proceeds in order to secure a higher current income yield. In return for your gift, you might get an income greater than the current dividend from the typical growth stock.

Who can benefit? Some typical casesYou may wonder if your circumstances match those of others who decided to create a charitable remainder trust. In fact, people of widely varying ages and financial situations do benefit.

An individual nearing retirement. You may have personal investments that are highly appreciated, yet have a low yield. By using these assets to fund a unitrust or annuity trust, you can avoid the up-front capital gains tax trap and supplement your income prior to withdrawals from your qualified retirement plan.

A retired couple or individual between ages 60 and 75. A unitrust can provide a hedge against inflation over a longer term, assuming the trust investments benefit from a gradually increasing market value.

An individual over age 75. For you, an annuity trust has a special appeal. You may be more concerned about receiving a fixed and unchangeable income than beating long-term inflation.

Making planning for the future as easy as possible. Gift planning opportunities for K-State alumni and friends

Nonprofit Org.U.S. POSTAGE

PAIDParsons, KS

Permit No. 181

KSU Foundation Center

2323 Anderson Ave., Suite 500

Manhattan, Kansas 66502-2911

PLANNING FOR

TOMORROWSPRING 10

continued on page 3

Traffic near an ivy-covered Kedzie Hall in the 1950s necessitated a crossing guard to help keep students safe on their walks to and from class.

ADDRESS SERVICE REQUESTED

K-State is pretty special to Bill and Debbie (Leckron) Miller. They met at college, started their lifelong jour-nalism careers there and have two daughters attending K-State today. Purple to the core, the Millers always knew it wasn’t really a matter of whether to contribute financially to K-State — it was how.

After some professional financial planning, the Coun-cil Grove, Kan., couple decided that in order to make a significant gift and still be able to keep up with the financial demands that come with having two daughters in college, they would give a gift of life insurance.

“We all need to give back, and we wanted a way to leverage our money and make a statement that we really support K-State,” Bill said.

Both Bill and Debbie are Kansas natives — he from Collyer, she from Abilene — who came to K-State knowing there was nowhere else they wanted to be. But of course, neither one of them ended up where they started out. Debbie spent the first few semesters on cam-pus undecided about her major, until she took a news writing class. The instructor encouraged her to pursue a degree in journalism, and became her advisor, as well as a lifelong friend. Debbie’s new path led her to working at the Collegian as a news reporter and editor, which is where she met Bill.

Up to that point, Bill had done some academic mean-dering of his own, starting out in landscape architecture, then bouncing over to animal sciences where, thanks to Dr. Miles McKee, he figured out what he wanted to study. After deciding on fisheries and wildlife biology, a chance meeting with Dr. Gerald Bergen, K-State’s direc-tor of financial aid at the time, led Bill to a scholarship in outdoor writing. The one condition? He had to take a journalism class.

Needless to say, it took a lot of good fortune and thoughtful guidance — something there’s an abundance of at K-State — to get Bill and Debbie in the same place at the same time. And they credit the education they received at K-State for the long-time journalism careers they continue in today.

“We talk about that a lot in the course of our giving to K-State, that so many simple things — from my teacher encouraging me to major in print journalism, which I hadn’t even considered, to Bill’s scholarship — brought us together and helped us get to where we are in our careers today,” Debbie said.

Bill graduated in 1974 with bachelor’s degrees in fisher-ies and wildlife biology and journalism. Debbie gradu-ated with her bachelor’s degree in journalism in 1975. Post-graduation job offers took her to Nebraska, then to Iowa, where they married and then both ended up writ-ing for publications at Meredith Corporation. Debbie helped start Midwest Living magazine and continues as a writer today, and Bill was a beef editor for Successful Farming magazine before becoming the editor of Farm Journal’s Beef Today.

The passion for K-State and all it meant to the Millers didn’t diminish when they left Manhattan — quite the opposite, in fact.

“We’re almost eccentric K-State fans,” Bill admitted.

“Let’s call it passionate,” Debbie laughed.

“Yes, that’s more accurate,” he agreed with a chuckle. “When we lived near Des Moines, we and another couple we’d gone to college with would actually get in our car and drive about 30 miles south of Des Moines in the winter time, so we could get WIBW on the car radio and listen to K-State basketball games. We’d pull onto a side road, tune in the radio and enjoy the game even though the temperature outside was only about 10 degrees. AM 580 was the only station we could hear the game on up there, and so that was the only way we could listen to the Cats.”

After their two daughters, Anna and Christina, were born they decided to move back to Kansas.

“We wanted them to be closer to their grandparents and the rest of our family. It was something that was really important to us,” Bill said.

Debbie was able to continue working as a writer for Midwest Living magazine from their ranch near Council Grove, and Bill became the director of communications for U.S. Premium Beef.

“We had season tickets for men’s basketball even when we lived in Iowa, so moving back gave us a chance to get involved in those things, too,” Debbie added.

As Bill and Debbie raised their two girls, they tried to do so in a way that would instill in them a sense of social responsibility and the desire to help others.

“When they were little, it was something as simple as having them each pick a child’s tag off the local ‘Care and Share’ Christmas tree and shop for gifts for that less fortunate child,” Debbie said.

Leading by example has been a theme throughout their lives as parents, contributing to community projects and mentoring at the local elementary, middle and high schools. It was the mentoring especially, though, that opened Bill and Debbie’s eyes to the amount of need there was. They became aware of the amazing number of talented young students who don’t have the support, whether socially or financially, to attend college. That’s when their perspective on giving began to shift from smaller contributions to various funds and causes at K-State over the years, to bigger ideas that could make a difference.

“There is a tremendous amount of need out there, and being able to see that personally has influenced our desire to contribute in larger ways,” Bill said. “We hope to make other gifts to K-State long before that insurance policy comes into play, but right now, this is a great way to accomplish our goals when it comes to giving.”

When the time comes to make other gifts, Bill and Deb-bie will discuss those decisions with their daughters, just as they did with their gift of life insurance.

“A big thing that we’ve tried to instill in our daughters is that compassion for others,” Debbie said. “And they see that by giving, we’re helping other students attend K-State just like they do.”

By Shanna Williams

Family leverages finances to make a gift to K-StatePURPLE TO THE CORE

Gifts of life insurance: The basicsThere are many ways to make a gift of life insurance, the

three most popular being an irrevocable gift of a new or

existing policy where the donor gives up all ownership, or by

naming the KSU Foundation as the primary or contingent

beneficiary of a policy. Each approach has advantages and

disadvantages.

Irrevocable gift of an existing policy — If a donor owns

excess life insurance, he or she might consider making

an irrevocable gift of the policy to K-State. If complete

ownership is transferred to the KSU Foundation and it is

named as the beneficiary, the gift will generate a charitable

income tax deduction.

If the policy is “paid up,” the deduction is generally equal

to the policy’s replacement value. If premiums remain

unpaid on the policy, the deduction can be calculated by

the insurance agency — a value that might be slightly in

excess of its cash surrender value. If the donor continues to

pay the premiums, each such payment is tax deductible as a

charitable gift.

Irrevocable gift of a new policy — A donor may take out

a new policy and irrevocably name the KSU Foundation

as the owner and the beneficiary of the insurance contract.

Whether the donor makes one single premium payment

for the policy or pays premiums annually, each payment

produces a charitable income tax deduction.

Naming the KSU Foundation as a primary or contingent

beneficiary — If the donor wants to retain maximum

flexibility, the KSU Foundation can be named as either the

primary or contingent beneficiary of the policy. This will

not produce an income tax deduction for the payment of

future premiums, but it does afford the donor a full estate tax

charitable deduction when the donor dies.

Creating your legacyLife insurance has many unique attributes that may enhance

nearly any comprehensive charitable gift plan, and working

with the KSU Foundation to establish your gift provides

unique opportunities. For instance, if you give a gift of life

insurance without our knowledge, the funds provided by

your gift would go to the university’s general fund. But with

our help, you can designate your gift to fund your particular

passion at the university. You also have the opportunity to

create a legacy that will live on at K-State.

For more information about gifts of life insurance, contact

the KSU Foundation Gift Planning staff at 785-532-7531 or

giftoptions@found.ksu.edu.

Pho

to b

y H

arol

d G

asto

n

Debbie, Anna, Christina and Bill Miller

Please send me a free, confidential

personal illustration on the following:

o C

haritable remainder unitrust

o C

haritable gift annuityo

Deferred gift annuity

I would also like m

ore information on

making a gift of:

o Securities

o O

ther _______________

o Life insurance

o O

ther _______________

o Real estate

o O

ther _______________

I am interested in m

aking a gift to support:

o Research

o C

ampus infrastructure

o Scholarships

o Faculty enhancem

ent

o G

raduate fellowships

o I/w

e have included a bequest to the Kansas State U

niversity Foundation in my/our w

ill and/or living trust.

Nam

e

Address

City, State, ZIP

Phone

E-mail

Birthdate

Spouse’s name

Spouse’s birthdate

We urge you to discuss your tax planning

with your accountant or other financial

advisor.

PLANNING FOR

TOMORROW

SPRING 10BENEFIT

HOW YOUR FAMILY CAN

FROM A TRUSTcontinued from front

Just ask!Still have questions?

Send us this form and we’ll get right back to you.

A single person over age 80. You might find that a unitrust with a term of 20 years is attractive. If you do not survive for the full 20 year period, the remaining payments can be distributed to your children, grandchildren or anyone you designate.

Someone supporting an elderly parent. You may be seeking a method to increase a parent’s income and also make a philanthropic contribution. A charitable remainder trust can accomplish both objectives. These are only a few of the many ways a charitable remainder trust can help you supplement other sources of income while providing exceptional tax benefits.

Now add up your benefitsUnlike other ways of contributing, a charitable remainder trust allows you to retain benefits from the donated assets for life, knowing you’ll help to shape K-State’s future later. Look at these personal benefits you can enjoy:

• Increase income for you or your family when you give to a trust designed to pay out more than you now earn on the assets you will contribute.

• Receive a money-saving federal income tax charitable deduction.

• Pay no up-front capital gains tax when you give unmortgaged appreciated assets to the trust.

• Free yourself from investment worries with professional management of the assets you give by selecting a professional trustee.

• Gain the enduring satisfaction of having made a major commitment to K-State.

Design your own life income planIf you’re looking for an advantageous way to benefit you and your family and help K-State later, a charitable remainder trust is the ideal solution. With the counsel of our gift planning staff and your legal and tax advisors, a trust can be tailored to your personal circumstances. Call or e-mail the Gift Planning Department at the KSU Foundation at 785-532-7531 or giftoptions@found.ksu.edu. We’d love to hear from you. And for the record, we love leftovers…as long as we’re not talking about week-old meatloaf.

It’s time for a family meetingIf you have kids, it’s probably about time you sat them down and had the talk. No…not that one. Hopefully, if you have kids and you’re nearing retirement, you had that talk a long time ago. But this one can seem just as uncomfortable, which may be why you’ve put it off for so long.

We’re talking about your estate planning. Your will. Their inheritance. The need to make plans for everything you’ve earned, grown or taken care of throughout your life, so it can continue to be cared for, even when you’re not around. Your kids would probably just as soon not try to imagine a world without you. As a matter of fact, you’d probably rather not try to imagine it, either. But communicating with your family is never a bad idea, and more than likely, it will bring you together.

So, where do you start? Well, taking stock of your property, your finances, and your wishes for your child’s future is a good place to begin. Writing it all down helps. You can find a Wills Kit at the KSU Foundation Gift Planning Web site (www.found.ksu.edu/plannedgiving) that would probably be a big help. Appointing an executor of your estate, either one of your children or even someone who isn’t a part of your family, isn’t a bad idea either. Think about what means something to them, about what they believe in. Think about what you’d like them to have, and if you feel you have a responsibility to society through a charity or cause, what you’d like to leave behind in your memory.

Finally, sit down at the table with your family, take a deep breath, and start talking. You’ll be glad you did.

Placestamphere

Thank you for saving usthe cost of postage

Tape along open edges.

PLANNING FOR

TOMORROWSPRING 10

Tap

e al

ong

open

edg

es.

Discover a wealth of information by visiting

www.found.ksu.edu/plannedgiving

Planned gifts • Gifts of real estate • Gifts of securities or mutual funds • Gifts of personal

property • Give now

We’re here to help you! If you would like to know more about any of the giving ideas in

this newsletter, just fill out the form below and send it to us. It’s our job to help you make a

difference at K-State!

Planning for Tom

orrow is published by the K

SU

Foundation. For more inform

ation, please call 80

0-4

32-1578

or e-m

ail giftoptions@found.ksu.edu. Editor: S

hanna William

s. Layout artist: Shaun K

irmer.

REFIGURING WITH FAMILYTelling your kids about your estate plan is a good thing.

Telling them they’re getting less of an inheritance than they originally anticipated is a whole other ball of wax. Luckily, Wayne and Ellen Evans’ children were not only not upset about their parents giving away part of their share — they encouraged it.

“We explained to our three children that rather than each of them getting 33.33 percent of the estate, we planned to give 10 percent to charity,” said Wayne, who graduated from K-State with a master’s degree in mathematics in 1964. “This reduced their inheritance to 30 percent. But they supported our decision.”

Their children probably wouldn’t say they were surprised, since Wayne and Ellen (who earned her bachelor’s degree in human ecology from K-State in 1961) have been giving back since shortly after they left Manhattan for the “real world.” They met on a co-ed graduate bowling team while pursuing their degrees. Ellen asked Wayne to an upcoming dance, and they were married the following summer. But they probably wouldn’t have ended up on the same campus if it weren’t for a few well-timed opportunities.

“My father had gone to K-State, and I was a farm girl and very involved in 4-H,” Ellen said. “But I received a scholarship to K-State, which helped.”

“There was not a lot of money in my family, so I had to work to pay my way through undergraduate school,” Wayne said. “The Elks Club in Alamosa, Colo., offered me a full-tuition scholarship to Adams State College that allowed me to start my education. I chose K-State because of a mathematics teaching assistantship opportunity and a chance to get my master’s degree.”

After graduation, Wayne accepted a position as a programmer with IBM at their Rochester, Minn., development laboratory. Ellen spent time substitute teaching and volunteering in the Rochester school system, but the majority of her time was spent in “the most important job in the world” — raising their three children: Neil, Tracey and Troy. As their income grew, their small donations grew. All the while, they were cultivating a sense of philanthropy and educating their children in finance.

“Our family started the idea of sharing at an early age,” Ellen said. “Our oldest son shared that he was thankful for the finance training at home, and was amazed at how many young adults do not even understand the cost of interest on credit cards.”

After 27 years in Rochester, Wayne began an early retirement and traveled around the world, speaking at conferences and conducting security audits of IBM operating systems. They moved to Tucson, Ariz., where their family grew to include four grandchildren. One Christmas, they were presented with a very special, very unusual gift from their children.

“Our family spent a week at a YMCA family camp every summer when the kids were growing up,”

Wayne said. “Rather than give a gift directly to us, our children made a significant donation to the camp and refurbished a cabin in our name, which we were able to go back to together and visit. It was a special time and a wonderful gift.”

Having grown up discussing financial matters around the kitchen table, the discussion of estate planning with their children wasn’t much of a stretch. It was something that both Wayne and Ellen had decided was very important.

“I have witnessed the struggles that often occur, siblings and relatives fighting for their share, when someone dies with no estate planning,” Wayne said. “We earned the assets and it is our responsibility to disperse them in the manner we wish. The death of a parent is difficult for children to manage at any age, so having an estate plan helps eliminate conflicts.”

The Evanses decided to split the 10 percent of their estate among a few charitable organizations, one of them being the KSU Foundation. They decided that, given the fact that they may need their liquid assets for an unforeseen reason in the future, a bequest was the logical way to make their gift. The gift will benefit the mathematics department in the College of Arts and Sciences, and the College of Human Ecology, establishing named scholarships in both. But, being a former math major, Wayne figures you don’t have to have a large sum of money or portion of your estate to make a gift that makes a difference.

“If every graduate would give $5 a year to their college, there would be funds for scholarships,” he said. “The support of academics is important, and alumni should do the best they can to support it with monetary gifts.”

Philanthropy can bring families together with thoughtful discussion

Ellen and Wayne Evans

By Shanna Williams

Kent Sedlacek, senior director of gift planning; Lori Rogge, associate director of gift planning; Gordon Dowell, gift planning officer for extension and real estate; Darci Cain, gift planning officer; Sarah Ptacek, gift planning coordinator.