Armstrong

Dear MSU Alumni and Friends,

Old Main Society The Old Main Society recognizes donors who: Include the MSU Foundation as a beneficiary in a will (and provide a copy of the will or that portion of the will pertaining to MSU) Make the MSU Foundation a beneficiary in a life insurance policy, IRA, qualified retirement plan (pension plan) or revocable trust and provide a copy of the form or document to the Foundation Make a deferred gift to the MSU Foundation (i.e., Charitable Remainder Trust, Charitable Gift Annuity or Life Estate) Benefits of membership include: Co-equal status with other donor recognition clubs, including invitations to special donor events on campus A special edition copy of the book, Old Main: Images of a Legend

Although life insurance is an asset owned by the majority of American families, it is often overlooked as a method of charitable giving. By naming the MSU Foundation as beneficiary or owner and beneficiary of a life insurance policy, you can make a substantial gift to Mississippi State at a relatively low cost. If you own a policy that is no longer needed for its intended purpose, it might be time to consider how your policy might be used to help meet your long-range financial and estate planning goals.

A gift of life insurance can be as simple as designating the MSU Foundation as beneficiary of the policy. You retain ownership and the right to change the beneficiary if you choose. When you name the Foundation as a primary, secondary, or final beneficiary of a policy, no income tax deduction is allowed, but your estate will receive a charitable deduction. If you would like to name the Foundation as beneficiary of your policy, ask your insurance agent for a change of beneficiary form.

Another option for giving life insurance is to make the Foundation both owner and beneficiary of a policy. In doing so, you give up ownership of the policy, waiving the right to assign or borrow against the policy or to change the beneficiary. If you give a "paid-up" policy, one on which you are no longer making premium payments, you may deduct an amount approximately equal to the cash value of the policy. By giving a policy on which you are still paying premiums, you may deduct the approximate cash value and any future premiums paid, when these payments are made through the Foundation.* If you would like to name the Foundation as owner and beneficiary of your policy, ask your insurance agent for an assignment of ownership form.

When making a gift of life insurance, please remember to provide the Foundation a copy of any documentation that names MSU as beneficiary or owner and beneficiary of your policy. With this documentation, I can ensure that you are recognized as a member of the Old Main Society, our recognition program for planned gift donors. Donors receive recognition in university publications, invitations to special events, and a copy of Old Main: Images of a Legend.

When making a decision on a gift of life insurance, consider the options above. Please contact me at the address below if you would like to make a donation of life insurance or if you have any questions about this or any other method of planned giving.

An option, which makes it possible to bypass both estate tax and income tax, is to transfer the IRA or pension plan to the Mississippi State University Foundation. Utilizing this strategy, ordinary income assets (like the IRA or pension plan) are transferred to MSU without tax, and assets like stocks, bonds and real estate are transferred to your heirs. Careful consideration of the tax implications, along with technical advice from a planning professional, can help insure that your retirement nest egg is transferred in accordance with your wishes without diminishing in value.

Please consider the designation of MSU Foundation as a beneficiary of an IRA or qualified retirement plan. As with other deferred gifts (bequests, charitable remainder trusts, charitable gift annuities and life insurance), you may specify how the proceeds should be utilized when received by the Foundation.

C. Richard Armstrong, Colonel, USMC (Ret),
Class of '68
Director of Planned Giving
MSU Foundation
P.O. Box 6149
Mississippi State, MS 39762
Toll Free: 877-677-8283
Office: 662-325-3707
Fax: 662-325-8426
E-Mail: rarmstrong@foundation.msstate.edu

*Regarding the deductibility of these policies, state laws can vary. Please consult your insurance agent or tax adviser regarding your specific situation.