Give Property While Continuing to Enjoy Its Use
 The most valuable single asset many persons own is their home. Have you ever
considered using your home to fulfill the desire to make a charitable gift?
Did you know there is a way to give your house while continuing to live there as
always?
Using what is known as a life estate arrangement, you make a gift of
your home or other appropriate property now while retaining the security of
knowing you may live there as long as you wish. You enjoy the full
rights and responsibilities of ownership.
Because you will make a gift of the property at your death,
you receive a charitable income tax deduction for part of the value
of the property immediately.
You continue to maintain the property, pay the taxes,
and even receive any income it generates. But because you have provided
for the future disposition of the property during your lifetime, it does
not pass through your probate estate at death, possibly saving unnecessary
expenses and avoiding delays. The property will also not be part of your
estate for federal tax purposes, resulting in what may be significant tax
savings for your heirs.
Note that you should not consider giving to remainder interest in
your home to any charitable organization if it represents the bulk of
your estate and if you may need access to its full value to fund a
possible future move
to a retirement community, etc.
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For example: Marjorie, 77, lives in the family home that
she and her late husband purchased many years ago. She has no
children but has two sisters who live out of state. Marjorie
plans to leave the majority of her estate to her sisters and their
children, but she would like to make a substantial charitable gift in memory of her
husband.
After reviewing all of her assets, Marjorie decides to make a gift of
the home now, retaining the right to live there for the rest of her
life. She has been advised that she has plenty of other assets
should she one day need costly long-term care.
In so doing, she gains the satisfaction of knowing she has made a
meaningful gift while also enjoying an immediate income tax
deduction equal to more than half the value of the home, as well
as the knowledge that she has
removed the home from her estate for tax purposes.
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