Property Turns Into Income
Miranda's grandson came often to visit and help with chores around the house. On one such visit, he helped Miranda "surf" the internet. She enjoyed reading finance updates and donor stories on her alma mater's planned giving website. She learned that she could make a gift of her home to charity, and receive income for life.
Miranda:I called my lawyer and asked her how a charitable remainder unitrust works. She said that when the time came for me to move out of my home I could give it to USJ with the University's approval, and set up a special kind of trust. The trust would provide me with income for the rest of my life and I would receive a tax deduction for my gift.
Miranda thought that she might want to move to a condominium with less upkeep. Her financial advisor reviewed the plan and said that the income she received from the charitable remainder trust would be enough to cover her living expenses.
Miranda: After visiting real estate websites with my grandson, I found a condominium nearby that was perfect for me. I called the gift planner and said that I was ready to move out of my home and set up the charitable trust.
Miranda was thrilled that she could turn her property into income to meet her future needs and receive a charitable deduction for her gift.Is a gift of your home to fund a charitable trust right for you?
Your home has been one of your best assets, but after the kids move out and the house gets harder to care for, you may have other needs. Better than a reverse mortgage, a unitrust is one strategy to "downsize" your home, avoid capital gains tax and provide you with income.
If you are considering this planned giving strategy, please let us know.
*Please note: The name and image above are representative of a typical donor and may or may not be an actual donor to our organization. Since your unitrust benefits may be different, you may want to click here to view a color example of your benefits.