The Alumnae Association for Douglass College | Douglass Difference

Retained Life Estates


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You’re considering a lifetime gift in partnership with the Associate Alumnae of Douglass College > Your home is your principal asset, you want to continue to live there, and you can continue to maintain it > You’re seeking an income tax deduction, not more income

You can give your home as a charitable gift and still continue to live there for the rest of your life.

How? With a retained life estate.

This creative gift plan transfers your house to the Associate Alumnae of Douglass College, but reserves a free lifetime tenancy to you. You can make a significant gift with the most valuable asset you hold, yet not disturb your living arrangements or your cash flow.

You will continue to be responsible for the house’s ongoing taxes, structural maintenance and upkeep. Also, we mutually agree upfront about what we will do if you no longer wish to live in the house after you have donated it to us, or if you become physically unable to continue living there. Your gift will provide you with a charitable income tax deduction, based on the fair market value of your house minus the present value of the life tenancy you have retained.

Here are some considerations if you are contemplating a gift to the Associate Alumnae of Douglass College of your home.

  • As with all gifts or real estate, we must review and approve the transfer.
  • You will need to secure an independent appraisal of your home to establish its value for the deduction.
  • If there is a mortgage or lien on your home it will complicate the transfer to us and could result in taxable income to you.

The Associate Alumnae of Douglass College Office of Gift Planning can advise you on all of these matters.

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Example

You have always loved your home, and have no plans to move from it. It has appreciated significantly since you bought it, and today it is the largest asset in your estate. You are considering a gift to the Associate Alumnae of Douglass College in memory of your sister, but cannot locate an asset that you can part with comfortably.

You decide to donate your house to the Associate Alumnae of Douglass College, retaining a life estate for yourself and your husband. You have secured an independent appraisal stating that your house is worth $250,000. The mortgage has been paid off.

Here are the benefits of your gift:

Click here to calculate the benefits a retained life estate would
give you.
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 Donors: Wife and Husband, 68 and 70

 
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Asset value

$250,000
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Charitable deduction:

$74,229

How Do You Create a Retained Life Estate?

Consult with an attorney specializing in charitable gifts and estate planning. Then Email us, complete the personal illustration form, or call us at 732-246-1600 so that we can assist you through the process.


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