Charitable Remainder Trust may provide income for life
You can use your real estate to create a Charitable Remainder Trust (CRT). Because the property is donated irrevocably into the CRT, you are entitled to an immediate substantial tax benefit based on the fair market value of the property. The CRT will subsequently produce an income stream for a period of years or for the rest of your and/or your spouse’s, partner’s or beneficiary’s life. Once the trust dissolves, the remainder amount will be transferred to charity. This option works best for highly appreciated, low-yielding real estate.
Retained Life Estate provides tax and estate planning benefits.
A retained life estate is a special type of gift that allows you to retain the use of your property for the remainder of your life. By donating property to the Real Estate Foundation while you are still alive, you receive an immediate income tax deduction for a portion of the current fair market value of the property. Upon your passing, the property will be sold and the resulting funds will benefit the causes you care about most.
Bargain Sales allow for personal and charitable benefits
In a bargain sale, you sell your property to the Real Estate Foundation for less than fair market value. The transaction is part sale and part gift. You receive cash for the sale price and the gap between the fair market value and the sale price becomes your charitable donation.
Gifts by Will or Bequest are powerful estate planning tools
By donating real property through your will, you arrange for the orderly distribution of your assets for the benefit of your favorite charity, reduce the amount of estate taxes due, and help family from having to deal with the upkeep, liability, taxes, and sale of the donated property. If you are interested in including your real estate in your estate plan, we can supply suggested legal language for your attorney.
Outright gifts have immediate and positive financial planning and charitable impact
Donors receive a charitable deduction for the fair market value of the gifted real estate; capital gains taxes are avoided on appreciated property; potential estate taxes on the property are eliminated; and the proceeds benefit the donor’s favorite charity immediately. Many donors are surprised at how satisfying outright gifts are.