RETAINED LIFE ESTATE
One of your valued possessions, your home, can become a valued gift to the Foundation even while you are still living in it, and even if you want your spouse or other person to live there for life. This arrangement is called a retained life estate.

You Retain Rights, Responsibilities and Tax Savings
By deeding your home to us now, you can obtain a sizable income tax deduction this year. The amount depends on the value of the property and your age (and the age of any person given life use). In addition, you retain the right to rent your home or make improvements to it. You continue to have responsibility for maintenance, insurance and property taxes.

Example: Ellen, age 65, a widow, deeds her home to us, though she plans to live there for the rest of her life. The market value of the property is $200,000 (the house, $160,000, and the land, $40,000). Using the required IRS table to discount the gift based on Ellen's life expectancy and future depreciation of the house, her accountant determines her income tax deduction to be in excess of $55,000.

Any personal residence qualifies for this tax deduction-a farm (with or without the house), vacation home, condominium, even stock in a cooperative housing corporation.

Your gift to us must be an irrevocable remainder interest. In other words, after your life use and that of any survivor, the Foundation receives the property outright.

Tax Savings for Partial Use
Even a home you don't occupy year-round may qualify. For example, you could give the Foundation a one-half interest in a vacation home. You would continue to use the property for six months of each year while we, as half owner, would use it for the remaining six months. As a result, you'd be entitled to an income tax charitable deduction based on half the property's fair market value.

Life Income From Home Transferred to a Trust
If you don't want to live in your unmortgaged home any longer, consider transferring it to a charitable remainder trust. The trustee can then sell the property and invest the proceeds in income-producing securities. You'll receive an income for life-and so can a survivor you name. The trust principal becomes ours, without exposure to estate taxes when spouses are the only income beneficiaries.

When you transfer appreciated property that has been held long-term, you won't pay any tax on the capital gain. And you'll benefit from a substantial current income tax deduction.

The typical donor:

- Wants to make a gift while retaining the right to use his or her property
- Has income he or she would like to offset with a charitable deduction.
- Does not desire to pass personal residence or farm to heirs.

Gift features and benefits:

- Immediate income tax deduction.
- Full use of asset during life
- Meaningful gift to charity
- Reduction of gift and estate taxes

How Do I Make a Gift Using a Retained Life Estate with a Personal Residence or Farm?
A gift of a Retained Life Estate to the Foundation must be reviewed and evaluated by the Board of Directors. A Real Estate Packet of specific information about the personal residence must be completed and sent to the Foundation. Once the Real Estate Packet is received, the evaluation process may take 60 to 90 days to complete. This process includes a physical inspection, environmental assessment, title report, appraisal, and so forth. When the evaluation is complete, you will receive notification of the results. For tax purposes, you must obtain your own appraisal to determine the fair market value you claim on your income tax return. Your tax return must include IRS form 8283 signed by your professional appraiser.

Other Facts You Should Know about a Retained Life Estate Using a Personal Residence or Farm
While you retain the right to live on and use the property, you continue to be responsible for all routine expenses such as maintenance fees, insurance, property taxes, and repairs. If you later decide to vacate the property, you may rent all or part of the property to someone else, or sell the property in cooperation with the beneficiary institution.