Office of Development
Planned Giving
Real Estate Can Be a Beneficial Charitable Gift
When you give your home or other real estate to St. Francis, you create an enduring testimonial of your interest in the university's mission. And what's more, your personal satisfaction is complemented by valuable tax benefits.
Benefits
- Income tax charitable deduction for the full fair market value
- Avoidance of tax on the property's appreciation
- No uncertainty or expense of trying to sell the property
- No gift tax, plus a reduction of your taxable estate
Gift of Home Doesn't Mean You Have to Move Out
Let's assume you like the tax advantages that a charitable gift of real estate would offer, but you want to continue living in your personal residence for your lifetime. Did you realize you can give your home to St. Francis, even though you continue living there? It's called a retained life estate.
Benefits
- Lifetime use of the residence for you and/or another person
- Income tax savings through charitable deduction
- Estate tax savings for you and/or your spouse
- Ability to gift only partial interest in property and receive tax advantages
A gift of your home, farm, vacation home or condominium, even with stipulations about occupancy, results in a charitable deduction on your income tax.
The retained life estate may also provide you with a way to let someone other than you or your spouse (perhaps a sibling or a child) have life occupancy of your home with reduced tax obligations.