Using Your Home as a Gift

For many people, their home is their single most valuable asset. Have you ever considered using your primary or vacation 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 may also not be part of your estate for federal tax purposes, resulting in what may be significant tax savings for your heirs.