Funding the Future

Giving, ISU Foundation News — By on September 19, 2011 10:03 am

Is ISU in your will?

Between now and January 1, 2013, a “window of opportunity” exists with the gift and estate tax exemption set at $5 million per taxpayer.  Your financial advisor may recommend that you take advantage of this opportunity to pass wealth to your heirs in ways that will benefit them now and in the future.

Record low interest rates are driving the popularity of the charitable lead trust to minimize your tax liability.  With a charitable lead trust you can make annual gifts to an area of interest to Indiana State University for a term of years, typically between 10 and 20.  At the same time, this intergenerational wealth –transfer tool enables you to provide for your heirs, while sharply reducing gift and estate taxes.

Briefly, here’s how it works: A donor places assets in a trust.  The trust pays income to Indiana State University for a set number of years.  The term of years and the income payout rate may be balanced to minimize or eliminate entirely the gift/estate tax liability associated with transferring gifts to heirs.  At the end of the trust term, the full value of the trust passes to heirs free of any further gift or estate tax.

Have you included Indiana State University in your will? This revocable acknowledgement will enable you to leave a lasting legacy with Indiana State University. By disclosing your bequest intention, you will be part of the prestigious 1865 Society.

For more information, please contact Steve Brown, Vice President for Development, Indiana State University Foundation at


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