March 22, 2017 — Discussion
As more Baby Boomers reach retirement age we are seeing greater interest in charitable gifts that help save taxes (pre- or post-retirement) and/or produce lifetime income. In some of these cases, the best gift choice for a donor may involve unlocking the value of appreciation in real estate. Generally, the real estate being considered for any type of charitable gift should have little or no debt (mortgage) attached to it.
The most common types of real estate gifts are (a) outright gifts (deductible at appraised value) and (b) charitable remainder unitrusts, but there are other tax wise options as well–such as (c) a retained life estate or (d) a charitable reverse mortgage. The latter two are a wee bit more complicated than the average charitable gift, but may be a perfect fit for some donors. Continue Reading ➜