Real Estate
For many families, real estate has been an excellent investment because its value usually increases over time. Few people realize that the real estate itself might be the source of a substantial gift. If you do not need to use your property, you can give it to Stephens now and receive a charitable deduction. You may also receive income for life if you put the property into a charitable remainder trust. If you want full use of the property but wish to leave it to Stephens upon your death, you can establish a life estate or bequest.
Benefits of using real estate as a charitable gift:
- Reduced income, and estate taxes
- Financial security for loved ones
- Increased lifetime income
- Continued use of the contributed property during your life
Example:
Bill
and Barb own a home worth $200,000. They want to make a substantial
gift to Stephens College, but they want to continue living in their
home. They give Stephens their home but retain a life estate for
themselves. They continue to live in the house until their deaths. Bill and Barb gain a large and immediate income tax deduction and
remove the house from their estate, thus reducing future estate
taxes. They also have the satisfaction of knowing they have
made a major deferred gift to Stephens.
