Did you realize you can donate your residence and continue to enjoy its use for life? You would receive a charitable deduction for your house or condominium even though you continue living there. This is called a Retained Life-estate.
Give Your Home but Enjoy Life-use in 2023 and Beyond! (Tax Laws Changed 2017 and perhaps since. Always consult your certified accountant or tax attorney.)
Let’s assume you like the tax advantages that a charitable gift of real estate would offer, but you want to continue living in your personal residence for your lifetime. You also would want to retain the right to rent your house or make improvements. You may also wish a survivor (perhaps your spouse or other family member or members) to enjoy life occupancy. But ultimately, you would want The American Mental Health Foundation to be able to sell the property and use the proceeds to support its programs and thereby also create a legacy for you.
You can deed your home to us now, subject to all these rights, and still obtain valuable tax savings.
Consider the Tax Implications Even with All New Tax Legislation
A gift of your home, farm, vacation home, or condominium, even with stipulations about occupancy, results in an income-tax charitable deduction.
There may also be estate-tax savings. When you leave the home to your spouse through your will or some form of joint ownership, it is generally not subject to federal estate tax. However, if you want anyone else to live in the home after your lifetime, you pay a substantial estate tax to leave the property to them.
The Retained Life Estate provides you with a way to let someone other than your spouse have life occupancy of your home without the associated tax payments.
Personal Satisfaction Added to Tax Benefits
If you are considering leaving your residence to AMHF, ask us about a Retained Life Estate. Besides the income and estate tax advantages you would enjoy, you would have the satisfaction of creating a significant legacy bequest and gift to The American Mental Health Foundation.
Office of Legacy Planned Giving and Development, American Mental Health Foundation, Box 3, Riverdale NY 10471-0003