Property Turns into Income
Miranda was visiting with staff at the Catholic Foundation of Eastern Montana when they called to thank her for a gift she had made and she decided to share her concerns. The planned giving staff member at the Foundation shared with Miranda a way in which she could make a gift of her home to the Foundation (to benefit the Church) and receive a guaranteed and fixed income for life.
Miranda: I thought this sounded like a little "too good to be true". I was told that when the time came for me to move out of my home, I could give it to the Foundation, as long as it was still marketable, and could potentially set up a Charitable Gift Annuity or even a Charitable Remainder Trust. Both would provide me with income for the rest of my life (which I wasn't receiving), and I would receive a tax deduction for my gift, in addition to the Montana Endowment Tax Credit (which was a really nice bonus!).
Miranda thought that she might want to move to a condo with less upkeep. Her financial advisor reviewed the plan and said that the income she received from the Charitable Gift Annuity or Charitable Remainder Trust would be enough to cover her living expenses.
Miranda: After visiting real estate websites with my grandson, I found a place nearby that was perfect for me. One of my friends was already living there, and loved it! Anyway, I called the Foundation and said that I was ready to move out of my home and set up the gift arrangement.
Miranda was thrilled that she could turn her property into income to meet her future needs and receive a charitable deduction and Montana Endowment Tax Credit for her gift.Is A Gift Of Your Home To Fund A Charitable Gift Annuity or Charitable Trust Right For You?
Your home has been one of your best assets, but after the kids move out and the house gets harder to care for, you may have other needs. Better than a reverse mortgage, a Charitable Gift Annuity or Charitable Trust are two strategies to "downsize" your home, avoid capital gains tax and provide you with income.
If you have questions about how either of these gift plans could help you downsize, please give us a call. We would be happy to answer your questions.
*Please note: The name and image above are representative of a typical donor and may or may not be an actual donor to our organization.
