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 ollowing
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. A. 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. A. 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 Susan Cortese at (831) 333-9023 or send an email to Susan Cortese.
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