Gift & Estate Planning: Real Estate

Real Estate
September 2, 2019 Shawn Sweeney

An often-overlooked resource, real estate can be an excellent way to make a meaningful gift to the Jane Goodall Institute that could also enhance your income or generate tax savings.

HOW IT WORKS

  1. You deed your property (such as home, vacation home, commercial building or investment property to JGI.
  2. The Institute will sell the property and use the proceeds to support our crucial work.

Alternatively, you can also donate your home, but keep living thereā€¦.

HOW IT WORKS

Life Estate Arrangement – Give your personal residence (a house, cabin or farm) to the Jane Goodall Institute and continue to live there rent free for the rest of your life or a term of years. In exchange you receive an immediate income deduction.

  1. You irrevocably transfer your residence, farm or vacation home to JGI.
  2. You continue to live in the property rent-free for life or a specified number of years and you are responsible for all taxes and upkeep.

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 when you pass away, 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.

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