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Retained Life Estate

If you are considering a gift of real estate, the best option for you may be a retained life estate. This arrangement enables you to donate your home but retain lifetime use of it, for yourself and/or other members of your family. You benefit from savings on estate tax and income tax because this is a charitable deduction.

Here's how it works: Ownership of your property will be transferred to Hampshire at a future date; however, you are entitled to claim an immediate income-tax deduction for a portion of the appraised value of the property and retain the rights and obligations of ownership for life. You continue to be responsible for its taxes, structural maintenance, insurance, and upkeep.

Your charitable deduction is based on the fair market value of the home less the present value of your retained life tenancy. Any capital improvements, such as a new roof, may allow you to claim additional deductions.

With a retained life estate, you make a significant gift to the College without disturbing your living arrangements or your income, and receive the immediate benefit of tax savings.

Once your retained life estate has been established, you will enjoy the benefits of membership in the Harold Johnson Society.

For more information, please contact us.

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