Retained Life Estate

Your clients can transform increased property values into community good, while receiving financial and tax benefits, by making a charitable gift of real estate through the Foundation.

A retained life estate allows donors to continue to live in and fully enjoy their home (or vacation property) for as long as they would like, while giving future ownership to the Foundation.  The gift of the "remainder interest" is a charitable contribution in the year in which the gift arrangement is made, and may result in a substantial charitable income tax deduction. When the life tenancy terminates, the Foundation becomes the property's owner. The proceeds from the property's sale can then be transferred to a charitable fund established at the Foundation to support the donor's interests.

HIGHLIGHTS:

  • The personal residence may be a farm or vacation home as well as a principal residence.
  • Donors avoid capital gains taxes on the appreciation provided there is no mortgage on the property.
  • Donors may claim a charitable income tax deduction in the year of the gift, with carryover privileges for up to five additional years.
  • The property is removed from the estate, which will realize estate tax savings. The gift will also avoid probate and estate administration expenses.
 
 


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