Beyond a Gift in Your Will or Trust: Three Other Ways to Give Real Estate
You may want to explore alternatives to a gift in your will or trust, such as a bargain sale, creating a charitable remainder trust or making a gift today.
1. Make Us a Deal
A bargain sale occurs when you sell real estate that you've owned longer than one year to us for less than its current fair market value, subject to our agreement.
After we purchase your property, three things happen:
- you receive a cash payment from us for the sale price;
- you receive a charitable deduction for the difference between the sale price and the higher fair market value; and
- we receive the property at a bargain price.
2. Receive Income for the Rest of Your Life
Another approach is to use your property to fund what's known as a FLIP charitable remainder trust. Such a trust can be set up to make lifetime payments to you or any other recipient you name after the property is sold. At your death, the charity of choice receives the balance (remainder) in the trust.
Donating property to a charitable remainder trust provides you with a number of benefits:
- Eliminate up-front capital gains tax on the increase in the property's value since you bought it.
- Receive an immediate income tax deduction for the value of the remainder interest.
- Receive income from the trust for the rest of your life once the property is sold.
- Reduce the cost of probate—the legal process of administering your estate after your death—by eliminating the property from your estate.
- Relieve yourself of selling or maintaining your property.
- Make a significant gift that we can access after your lifetime.
|Calculate how a charitable remainder trust could benefit you.|
3. Benefit Today
When you use your real estate to make a charitable gift to us now, you will avoid the hassle of selling a piece of property you no longer wish to own and you won't have to worry about getting a fair price. In addition to freeing yourself from the costs and responsibilities of ownership, making an outright gift of real estate you have owned longer than one year offers these benefits:
- You obtain an income tax charitable deduction equal to the property's full fair market value.
- This deduction reduces the cost of making your gift today and frees cash that otherwise would have been used to pay taxes.
- You eliminate long-term capital gains taxes on the real estate's appreciation.
- The transfer isn't subject to the gift tax.
- The gift reduces the size of your future taxable estate.
If you have questions about any of these additional options for giving real estate, please contact Steve Maughan at 800-808-7858 or firstname.lastname@example.org.
|Learn more about making a gift of real estate in our free guide.|
Getting Started | Is This Gift Right for You? | Case Study | How to Complete Your Gift | Beyond a Gift in Your Will or Trust | Action Items
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The information on this website is not intended as legal or tax advice. For legal or tax advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes apply to federal taxes only. State income/estate taxes or state law may impact your results.