Remainder Interest in Real Estate

Your gift to the foundation of a home or farm does not provide a life income. However, you can give a gift of all or a percentage of either your home or farm to a fund at the foundation.

When choosing this type of deferred giving, a donor is entitled to an income tax charitable deduction for the present value of the remainder interest. You also may be able to escape potential capital gains tax on the property’s appreciation.

Donors can also retain lifetime control of the property. If the donor should sell the home at any time, the fund then receives its share of the settlement. Otherwise, the fund becomes fully funded by a cash payment to the foundation after the donor’s lifetime.