888-228-7320Charitable Gift Annuity - Life Estate - Lifetime Annuity
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Charitable Gift Annuity
Real Estate with Causes charitable gift annuity program is setup
to help you, the donor, increase your current income from rental property
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
A Charitable Gift Annuity is a donation that falls in the category of
Planned Giving. It involves a contract between a donor and Real Estate
with Causes, whereby the donor transfers property to Real Estate with
Causes 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)…
Life Estate
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.
“What Do I Need to Do to Create a Life Estate or Charitable Gift Annuity?”
Step 1 Complete This Form or Call Us Toll Free 888-228-7320
| Step 2 Complete the Deeds, Record, Process & Transfer Ownership |
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Now that you have chosen to move ahead with your property
donation or charitable gift annuity, we provide the necessary
paperwork needed to transfer ownership to our organization. Each
state and county is different and we work closely with you by
providing all necessary forms. *Your only expenses with the real estate donation is a property appraisal and any title transfer fees. |
| Step 3 Check Your Mail For Your Tax Documents Arrival |
| As soon as we take possession of your property and the ownership
transfer is finalized, we complete all necessary paperwork and mail
everything you will need to declare your tax deduction and begin
receiving your annuity payments. The turn
around time depends on the speed of the county you donate from,
we've found the entire process is usually completed in only 2 to 5
weeks. We make the real estate donation process easy! Call us now to donate! 888-228-7320 |