From www.taylor.edu - Taylor University, integrating faith and learning

Retained Life Estate

52 Class President Chuck MicklewrightA potential donor can transfer the ownership of his home, farm, vacation home, or other real estate to Taylor University now, while retaining the right to use the property for the remainder of his life. He gets a current charitable deduction for an amount equal to the future value of the real property.

That value is calculated using current interest rates and the donor's life expectancy. The donor continues to be responsible for maintaining the property and paying all related expenses. The advantages for the donor are:

  1. The satisfaction of giving
  2. The benefit of an income tax deduction in the year of the gift arrangement
  3. Removing the property from the donor's estate, which may reduce or eliminate estate tax