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Real Estate

Here are some reasons you may want to consider a gift of real estate:

  • You would like to make a gift to UL while retaining your cash and liquid assets.
  • You are discouraged from selling appreciated property because of substantial capital gains tax liability.
  • You own rental or commercial property that has become a management burden.
  • You are considering moving to a smaller home or retirement complex.
  • You would like to receive lifelong income from your property.

Five ways to make a gift of real estate

  1. Outright gift.
  2. Gift with retained life use.
  3. Give your residence, vacation home, farm, or other real property to UL and continue to use it during your and your spouse's lifetimes.
  4. Life income agreement. Give your property to a trust naming UL Lafayette as the remainder beneficiary. The trust sells the property and invests the proceeds, paying you an income for life.
  5. Bargain sale. Sell your property to the university at a reduced price and you will receive both cash and an income tax charitable deduction.
  6. Gift by bequest in your will.

How you can use real estate to fund a life income agreement

An example:

Mrs. Broussard wants to make a gift to UL Lafayette to establish a named endowment in her favorite college, the College of Education, at the University, but her limited annual income prevents her from making a cash gift.

She has property that was purchased 35 years ago, and the knowledge of a large capital gains tax has kept her from selling the property and reinvesting the proceeds. By using this property, valued at $125,000, to fund an 8% life income trust, Mrs. Broussard makes a gift to the university and increases her annual income at the same time.
Her benefits include:

  • Additional income for life, initially about $10,000 annually
  • A current income tax charitable deduction
  • Avoidance of capital gains tax on the property when it is sold
  • Reduction of any future estate taxes
  • Elimination of management concerns and property taxes
  • Membership in the Louisiana Heritage Society™
  • A gift to UL Lafayette after her lifetime to endow a scholarship in her name in her favorite college, the College of Education.

For more information about a gift of Real Estate to UL Lafayette, please contact the Office of Development at (337) 482-0922 or development@louisiana.edu.