I was overwhelmed by the thought of selling my house. I contacted the Trust and they handled everything for me. Not only did it simplify the process of moving, but I was also able to supplement my retirement income with a charitable gift annuity. It was wonderful.
— Peggy Andrix, Charter member of the Lynch Society, who gifted her house to the Trust and established a charitable gift annuity
Gifts of long-term, appreciated securities, such as stocks, bonds and mutual funds, can be a wise alternative to an outright gift of cash.
- You avoid the capital gains tax.
- You receive an immediate income tax deduction for up to 30% of your adjusted gross income, which can be carried forward for five years, for the fair market value of the gift on the date of transfer regardless of what you originally paid.
Life Estate Reserve
For many, a charitable gift could be their home, farm, or even a vacation home. Instead of waiting to provide the property as a gift, or turning it over outright to the Trust now, you can deed the property to the Trust while retaining a life reserve estate. For example, although the property is deeded to the Trust, you reserve the right to remain on and maintain the use of your property for life. The life estate can last for your life or your life and another’s life. You will remain responsible for the maintenance, insurance and taxes on the property.
- You receive a current federal income tax deduction for the present value of the remainder interest in your home or farm.
- You preserve your lifetime use and control of the home or farm while you are alive.
- You may reduce estate taxes.
If you own a long-term, appreciated piece of property and want to move, you can donate the property to the Trust, who will handle the sale of the property. Not only does this save you the hassle of marketing and selling your property, it provides you with substantial tax savings.
- You avoid capital gains taxes on the transfer of the property.
- You receive an immediate income tax deduction for the fair market value of the gift up to 30% of your adjusted gross income, which can be carried forward for five years.
- The property is removed as an asset from your taxable estate and you no longer pay property taxes, maintenance costs and insurance on the property.
- You may use part of the proceeds to fund a charitable gift annuity to provide you with future payments or fund another charitable gift.
Sell property or other valuable property to us for less than the fair market value to receive cash and a charitable income tax deduction for the gift portion. Although you may owe some taxes on the cash you receive, the charitable deduction from the gift could offset any taxes owed.
- You avoid capital gains tax on your gift.
- You will receive an immediate charitable income tax deduction, which could reduce your tax bill.
- You will receive cash that can be reinvested, such as for another home.