Life Estate Reserved
You may desire to leave your home or farm to the Church at your death but would like to receive a current charitable tax deduction.
A Life Estate Reserved might offer the solution you need!
How a Life Estate Works
You can deed your home or farm to Catholic Foundation of Eastern Montana but keep the right to use the property/live on the property for the rest of your life.
Benefits of a Life Estate Reserved
- You deed your home or farm to Catholic Foundation of Eastern Montana. The deed will include a provision that gives you the right to use your home or farm for the rest of your life and that of any other life estate party named in the deed.
- You and Catholic Foundation of Eastern Montana sign a maintenance, insurance and taxes (MIT) agreement to explain that you will do your best to keep the property in good condition and that you will maintain property insurance and pay the property taxes.
- When the owners of the life estate have passed away, your home or farm will belong to Catholic Foundation of Eastern Montana. We will use or sell the property to further our charitable work on behalf of the Catholic Church in our diocese.
Benefits of a Life Estate reserved
- Receive a federal income tax deduction for the value of the remainder interest in your home or farm
- Receive the Montana Endowment Tax Credit (for Montana taxpayers)
- Create a life estate based on more than one life. This will preserve the use of the property for you and a loved one, such as a spouse or dependent child
- Preserve your lifetime use and control of the home or farm while you are still living in or on it
If you have any questions about leaving a beneficiary designation gift to us, please contact us. We would be happy to assist you.
Life Estates Work for Spouses TooThe life estate can last for your life or based on your life and that of another person, such as a spouse or loved one.
Mortgage DebtIt is possible for you to make a gift of your property even though there is a mortgage upon the residence.
Maintenance IssuesYou will be responsible for the maintenance, insurance and taxes on the property, just as you were prior to creating the life estate.
Life Estates Are FlexibleIf, at some point in the future, you are no longer able to live independently in your home, we may be able to help you use your life estate to create a lump sum cash payment (with a joint sale) or create an income stream (using the life estate to fund a charitable remainder trust or charitable gift annuity).