Beyond an Outright Gift: Three Other Ways to Give Real EstateYou may want to explore alternatives to an outright gift of real estate, such as a "bargain sale," creating a charitable remainder trust or giving through your will.
Make Us a Deal
A bargain sale occurs when you sell real estate that you've owned for more than one year to us for less than its current fair market value, subject to our agreement. After we purchase your property, three things happen: 1) You receive a cash payment from us for the sale price, 2) you receive a charitable deduction for the difference between the sale price and the higher fair market value, and 3) we receive the property at a bargain price. You benefit financially, and so do we.
Receive Income for the Rest of Your Life
Another approach to donating real estate is to use your property to fund what's known as a flip charitable remainder trust. Such a trust can be set up to make lifetime payments to you or any other recipient you name starting after the property is sold. At your death, your charity of choice receives the remainder in the trust.
When you donate property to a charitable remainder trust, you can benefit in these ways:
- Eliminate up-front capital gains tax on the increase in the property's value since you bought it.
- Receive an immediate income tax deduction for the value of the remainder interest.
- Receive income from the trust for the rest of your life once the property is sold.
- Reduce the cost of probate—the legal process of administering your estate after your death—by eliminating the property from your estate.
- Relieve yourself of selling or maintaining your property.
- Make a significant gift that we can access after your lifetime.
|Calculate how a charitable remainder trust could benefit you.|
Include Us in Your Will or Trust
You can also make a gift of real estate in your will or living trust. Because a gift in your will or trust is revocable (that is, you can change it at any time during your life), you will not be able to take an income tax deduction during your lifetime, but the property is eligible for a charitable estate tax deduction upon your death. Another option is to bequeath full title to an individual as long as that person survives you. If not, Willamette University would receive the property.
If you don't need to make a new will or trust now for any reason, ask your attorney to draw a brief codicil or trust amendment for this purpose.
The official bequest language for Willamette University is: "I, [name], of [city, state, ZIP], give, devise and bequeath to Willamette University, an Oregon non-profit corporation located in Salem, Oregon."
|Learn more about making a gift of real estate in our free guide.|
If you have questions about any of these additional options for giving real estate, please contact Steve Brier at 866-204-8102 (toll free) or 503-370-6022 (direct) or firstname.lastname@example.org.