Gifts of Real Estate
Following are several ways in which you can make a gift of real estate:
- Outright gift
- Gift with retained life use. Give your residence, vacation home, or farm to Hospice Foundation and continue to use it during your lifetime and your spouse’s lifetime.
- Life income agreement. Give your property to a trust that sells the property and invests the proceeds, paying you an income for life.
- Gift by bequest.
- Gift by Charitable Gift Annuity
Following are some reasons you may want to consider a gift of real estate:
- You would like to make a gift to the Hospice Foundation while retaining your cash and liquid assets.
- You are discouraged from selling appreciated property because of substantial capital gain tax liability.
- You own a rental or commercial property that has become a management problem or is not earning enough.
- You are having difficulties locating a buyer for your property.
- You are considering moving to a small home or retirement complex.
- You would like to receive lifelong income from your property.
- You would like the Hospice Foundation to benefit from the sale of your property, after you no longer have a need for it, and receive a tax deduction now.
Using a real estate gift to fund a life income agreement
Mrs. Anderson wants to make a substantial gift to the Hospice Foundation but her limited annual income prevents her from doing so. She has a valuable building lot purchased 35 years ago. The threat of a large capital gains tax has kept her from selling the property and reinvesting the proceeds. By using her lot, valued at $200,000, to fund a 6 percent life income trust, Mrs. Anderson makes a gift to the Hospice Foundation and increases her annual income at the same time. Her benefits include:
- Additional income for life.
- An income tax charitable deduction
- Avoidance of capital gain tax on the property when it is sold
- Reduction of future estate taxes
- Elimination of management concerns and property taxes
- An invitation to join the Helen Westland Legacy Society.
Living in Your Home and Receiving An Income
In certain situations, the Hospice Foundation might be willing to provide you with an income in exchange for the remainder interest in your home or ranch. This is done on a case-by-case basis, covering the lives of two individuals 75 years of age or older.
If you would like more information, please contact Lisa Bennett, Hospice Foundation’s Director of Fund Development, at (831) 333-9023, ext. 11, or send an email to firstname.lastname@example.org.