IMPACT GIVING: Life Estates
An arrangement wherein you gift your home to another person or entity but retain the right to remain in the home for the rest of your life. Upon death, the Foundation receives the home unencumbered.
- Provides an immediate tax deduction.
- Eliminates many of the responsibilities of home ownership, but retains the comfort of being able to live out life in familiar surroundings.
- Gives the donor advanced knowledge of the future gift value for long term planning.
- A Grace of Christ Church member, widowed, age 80, has a home valued at $100,000, a small savings account and social security which provides for her daily needs. She establishes a life estate wherein Grace of Christ Church becomes the owner of her home but she retains the right to reside there for the rest of her life. Two years later, she develops Alzheimer’s and needs to move to an assisted care facility or nursing home. The Grace of Christ Church member qualifies for government entitlement programs to pay for assisted living or nursing home care, with the rental value of home and social security going towards payment of her care until death. Result: the church receives a gift of $100,000.
Please contact your financial advisor to determine how comparable figures would apply based on your particular case.