Life Estates in Homes and Farms
Many people do not recognize how they can use equity in their home or farm to create lifetime income while making a significant gift to The Foundation for Evangelism. You can transfer your home or farm to The Foundation but retain the right to occupy and enjoy income from the property during your lifetime and that of your spouse. You are responsible for maintenance and taxes while occupying and using the property but receive a tax deduction based upon your age and several other factors.
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Bob and Jane retired and purchased a home in a lake community in North Carolina. They have given to The Foundation for Evangelism for a number of years and want to make a significant gift but depend upon their savings and retirement accounts to provide income. Their home, which was purchased for $150,000 several years ago, is now worth $300,000. After meeting with their advisor, Bob and Jane learn of an opportunity to enjoy current tax savings in addition to amounts that would be saved from estate taxes. They decide to donate their house to The Foundation for Evangelism while retaining the right to live in it for the remainder of both their lives. As a result of this gift, Bob and Jane may be entitled to a charitable income tax deduction of $193,000.