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Gifts of Real Estate
Eileen and her husband, Paul, enjoyed their house. They had raised
their three children there and had many family memories. But after
Paul passed away suddenly, Eileen began to find that the old house
was a burden. Without Paul to take care of things and with their
children involved in their own families miles away, it seemed that
the house was too big, too old and even a bit lonely.
 Eileen:
"Paul always said that I was the solid one. If there was
a decision to be made I could get to the bottom line pretty quickly.
Well, the bottom line was that I needed to make a change for a number
of reasons. I decided to move into a smaller place in town, easier
to take care of and one that was part of a neighborhood where I
could make some new friends and be a part of activities and things.
And where my grandchildren could still come and visit."
"Paul and I had talked about what to do when we got to this
stage in our lives. I just thought Paul would be here with me, but
that wasn't to be. We had planned and knew I would have enough money
to live comfortably. Initially we thought I'd need the money from
the sale of the house, but I really don't."
"My advisor went over the numbers with me. If we sold it, there
would be a large capital gain and taxes to pay. But by putting the
house in a trust that then sells it, I avoided a taxable capital
gain because when I'm gone the trust goes to charity. The trust
takes the money from the sale of the house and invests it, and I
get the income from the trust for life. Then, an organization that
is doing great things will receive the remainder of the trust and
that will even save some estate taxes."
 Depending
on the circumstances that are involved, gifts of real estate can
be an effective means of planning a gift. Much of the individual
wealth in America is invested in real estate. While the first thought
often is a home or farm, real estate also can involve a vacation
or second home, an apartment or commercial building, a shopping
center, or undeveloped land.
Often our real estate holdings, be it our house, a second home
or investment property, is a significant part of our net worth.
Gifts of real estate, therefore, can enable us to make significant
contributions. Each piece of property and its unique circumstances
need to be reviewed to determine the suitability of the property
as a gift. Generally speaking, a rule of thumb is that an acceptable
piece of property is one that can be readily sold.
Also, there are many ways to donate property. It can be an outright
gift, a retained life estate, or placed
in a trust (such as what Eileen and her advisor set up). In
any case, while we discuss some generalities here about donating
real estate, if you are considering such a gift to California Symphony,
please contact us to discuss its suitability.
 In
addition to making a significant contribution, there can be other
benefits for you:
- There may be a charitable income tax deduction that would lower
your income tax.
- If your property has appreciated in value since you acquired
it, there might be a large capital gain tax that would result
if you sold it. By donating the property, you may be able to avoid
realizing the capital gains.
- Depending on your state regulations, you may be able to turn
the property into a gift that is structured to provide income
for you and a beneficiary.
- If the property is your home or farm, you may be able to make
a gift of it now and continue to live in it for the rest of your
life and receive tax benefits the year of the gift.
- If the contribution from your property exceeds the allowable
charitable deduction limits, the deduction may be carried forward
for five years.
There can be significant advantages to using property as a charitable
gift. Please contact us to discuss
your unique circumstances.
Please note, individual financial circumstances
will vary. The information on this site does not constitute legal
or tax advice. Donor stories and photographs are for purposes of
illustration only. As with all tax and estate planning, please consult
your attorney or estate specialist. All material is copyrighted
and is for viewing purposes only. Use of this site signifies your
agreement with the terms of use. The content
in this Planned Giving section has been developed for California
Symphony by Future Focus.
Please report any problems to webmaster.
Revised: March 20, 2007 21:44.
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