Many options are possible with the gift of property.
EXAMPLE #1: Hobbs Estate
When Elaine Hobbs of Otsego passed away, she left directives in her will that named the TAG Team (our Youth Advisory Council) of the Allegan County Community Foundation as the recipient of her estate. Elaine was not known to the Foundation. She heard of the work of the TAG Team while working on her will with her attorney. The gift of Elaine’s estate resulted in over $120,000 to establish a fund overseen by the TAG Team for the benefit of their peers. The fund supports youth leadership opportunities for Allegan County youth and a TAG Team internship program.
Elaine gifted her entire estate, allowing the Foundation to sell her home and establish the Elaine Hobbs Charitable Fund with the proceeds.
EXAMPLE #2: Russell “Bud” Blanz
Russell “Bud” Blanz wanted to leave the community of Allegan, where he lived as a business man and Fire Chief, a gift. By donating the proceeds from the sale of his home, he was able to establish the R.G. “Bud” Blanz Scholarship. When liquid assets aren’t an option, the donation of real estate may be.
Retained Life Estate
Through a retained life estate, you transfer ownership of your home or farm to the Foundation, while retaining the right to live in the property.
There are several good reasons to consider this kind of gift:
- You receive an income tax deduction in the year of the gift, based on your age and the value of the property.
- You can avoid family disputes over the future use and ownership of your home.
- You can make a significant gift to the Foundation and support a project or program that is important to you without giving up liquid assets.
- Giving real estate during your lifetime can simplify the estate settlement process: executors are relieved of any costs, expenses, and delays that can be involved in a transfer of real property at death.
- A retained life estate gift reduces your estate taxes by removing your property from your taxable estate.
You can choose to move out of your home, allowing the Foundation to sell your property and make an impact now.