Generosity Planning Benefits And Options
While reviewing your financial and real estate portfolio, it is often the best time to discuss a Generosity Plan™. A Generosity Plan™ is created for those interested in donating to a charitable organization. A Generosity Plan™ can include donations such as cash, bequests and real estate. Real estate gifting is becoming more popular as donors are learning how they too can benefit. Partnering with a trusted, experienced professional can make all the difference in how powerful your real estate donation can be for your family or business and your charity of choice.
Reasons To Donate A Gift Of Real Estate
- Satisfy a philanthropic intent
- Belief in a charity's mission and want to support its cause
- Aspiration to establish a legacy for oneself, family member or business successor
- Being charitable may also be beneficial to your family or business's financial goals
Benefits For Donating A Gift Of Real Estate
- Reduce capital gains
- Remove costs or fees associated with owning the property (taxes, HOA, maintenance, etc.)
- Provide charitable deductions (federal and state, where applicable)
- Qualify and use an appreciated asset as a charitable donation for tax deduction purposes
- Need to create or increase cash flow or supplement retirement income
Partnering With The Walter Joseph Group Provides
- One on one guidance to assist with the donation process
- The most up to date, innovative solutions from the top professionals
- A simple and streamlined process
- A trusted single point of contact
- Options if your charity of choice turns down your real estate gift
6 Ways To Gift Real Estate Property To A Charitable Organization
- Outright Donation An individual or corporation sells real estate property to a charity outright or in a trust.
- Bequest A charity is identified in a will as a beneficiary upon the death of a donor.
- Charitable Gift Annuity The donor transfer real estate in exchange for a guaranteed life income under a contract. In most circumstances the charity will receive the property, sell it, and contributes the proceeds to a trust company so payments can be made to a donor. May not be available in all states.
- Charitable Remainder Trust An irrevocable trust is set up with 2 sets of beneficiaries; income and charitable. The income beneficiary is usually the donor who receives a percentage of income from the trust for life or a term of years. The charitable beneficiary receives the principal of the trust after the income beneficiary dies.
- Bargain Sale Real estate property is sold to charity at less than fair market value (FMV). The donor bypasses the gain on the gift portion and receives a charitable deduction but must recognize the gain on the value he/she receives.
- Retained Life Estate A donor makes a donation of a primary or secondary home but continues to live in it or obtains rental income from it and obtains a charitable deduction based on IRS table. The property then passes to the charity upon the donor’s death.