Charitable Gift Annuity
Increase your current income from owned property while enjoying significant tax deductions with a life estate today!
Create a Life Estate - Guaranteed Income For Life!
Real Estate with Causes charitable gift annuity program is setup to help you, the donor, increase your current income from property you own while enjoying significant tax deductions.
- Payout rates ranging from 4.9% – 11.5% (depending on your age)
- Substantial income tax deduction and capital gains tax deduction
Charitable Gift Annuity
A Charitable Gift Annuity is a donation that falls in the category of Planned Giving. It involves a contract between you the donor, and Real Estate with Causes, whereby the donor transfers property to our 501c3 charity in exchange for a partial tax deduction and an income stream, expressed as a percentage of the original principal amount, to not more than two people for life.. Generally, there are three “versions” of each “type” of agreement. The “versions” are:
“Single Life” Agreement…
Pay only one person for their lifetime..
“Two Lives in Succession” Agreement…
Pay person “A” and then if person “B” survives person “A”, pay person “B”..
“Joint and Survivor” Agreement…
Pay two annuitants simultaneously with both names on the annuity payment check, each getting half of the payment, and at the demise of the first to die, pay the survivor the full annuity amount. This is used for married couples who file joint tax returns and/or who live in community property states.
A person who receives payments is called an “annuitant” or “beneficiary”. The fixed payments (called the “annuity”) are fixed and unchanged for the term of the contract. The annuity payments are NOT called “income”, for a portion of the payments are considered to be a partial tax-free return of the donor’s gift, which are spread out in equal payments over the life expectancy of the annuitant(s)…
There are also ways of donating a home but still being able to enjoy it during one’s lifetime. Property owners can create a life estate, which allows them to live in the house, with the understanding that the property title will be transferred to a given charity upon death. Owners still receive the charitable tax deduction while they are living, and depending on the property and its income potential, they may even be able to get lifetime annuity. At the same time, they avoid passing on the tax burden to family members after death.
A life estate is an especially attractive option for large trophy properties, in cases where heirs may be unable to afford the ongoing maintenance costs and property taxes. That way, even if one’s family is no longer able to enjoy a home, by donating real estate they can keep more of what in the long run is more useful: cold cash.
If a married couple sells their personal residence but retains a life estate in the residence, does retaining the life estate disqualify them from exclusion of gain on the residence?
A life estate is an interest for life in property. It is very common to sell or give property away while retaining a life estate: the seller or donor retains use of the property so long as he or she lives; Real Estate with Causes takes possession of the property only upon death.
To donate property – Call 888-228-7320 or Complete The Charitable Gift Annuity Donation Form Below