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
- Outright gift.
- Gift with retained life use.
- Give your residence, vacation home, farm, or other real property to UL and continue to use it during your and your spouse's lifetimes.
- 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.
- Bargain sale. Sell your property to the university at a reduced price and you will receive both cash and an income tax charitable deduction.
- Gift by bequest in your will.
How you can use real estate to fund a life income agreement
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 email@example.com.