Smarter Giving With Real Estate: A Win-Win for You and Your Chosen Cause

Many generous individuals include charitable gifts in their estate plans—but often miss out on valuable tax benefits they could enjoy during their lifetime. 

If you’re planning to leave real estate to a nonprofit after your passing, there’s a smarter way to give that can benefit you now: a retained life estate.  

What Is a Retained Life Estate?

A retained life estate (also called a “life estate reserved”) allows you to donate your personal residence or farmland to a nonprofit you are passionate about while retaining the right to live in and use the property for the rest of your life—or for the joint lives of you and your spouse. 

Here’s how it works: 

• You transfer the title of the property to the nonprofit through a simple deed. 
• You retain full rights and responsibilities for the property during your lifetime.
• Upon your passing, the property automatically transfers to the nonprofit—no probate required. 

Why Consider This Strategy?

• Immediate Tax Benefits: You receive an income tax deduction based on the present value of the nonprofit’s future interest in the property.
• Avoid Probate: The property passes directly to the nonprofit, simplifying your estate.
• Estate Tax Savings: For larger estates, this can significantly reduce estate taxes.
• Peace of Mind: You can enjoy the benefits of your gift now, knowing your legacy is secured. 

This strategy isn’t just for large estates—it’s a smart, efficient way for anyone to make a meaningful impact while gaining financial advantages today. 

Information contained herein was accurate at the time of printing. The information in this publication is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.