Life Estate Agreement
As with gifts of appreciated securities, real estate that has increased in value can be an excellent "tax-wise" way to make a gift to Stetson. It may allow you to claim a charitable tax deduction as well as avoiding the capital gains tax liability.
One way to make a gift of real estate is to give it outright to Stetson University. Another way is to arrange to remain in your home and agree to have it come to the University at the end of your life, or upon the death of you and your spouse. This is called a Life Estate Agreement.
With a Life Estate Agreement, you or you and your spouse may retain the right to use the property for the rest of your lives, and it will ultimately be given to Stetson. You and/or your spouse will be responsible for paying taxes, insurance and other maintenance expenses during your lives until the property transfers to the University. You would receive a charitable deduction in the year that the contribution is made and that asset would be effectively removed from your probate estate.
Gifts of real estate can be more complex than other gifts, and there are many factors to consider. Please contact us if you are considering a gift of real estate, and we will be glad to discuss it with you personally.