Lucy Van Pelt was probably right (even though she could be quite obnoxious while being right!). Remember when Lucy and Charlie Brown ponder Christmas gifts? Lucy complains that she only receives gifts of clothes or toys. To her, this is depressing. Lucy shares that the gift she really wants is…REAL ESTATE! Lucy is wise beyond her years. Our real estate—whether it is our home, farm land, vacant land, or other types of real property interests—may be an incredibly valuable element of our estate and tax planning for our charitable giving and to produce income and tax benefits during our lifetimes.
You may give land to an eligible church or charitable organization and receive the fair market value of the property (appraisal requirements from the IRS apply) as a tax deduction if you itemize.
Also, did you know you may retain a life estate interest in your home, continue to live there, give the remainder interest to church or charity to pass your home at your death…and receive a fair market present value of that remainder interest as a tax deduction? This also avoids probate as the property passes directly to the designated charitable beneficiaries.
Finally, do you have real property that isn’t producing much income? A solution may be to transfer that property to a charitable remainder trust (CRT), receive an income tax deduction, bypass any capital gains, and have the CRT trustee sell the property in your CRT. The proceeds can then be diversified and invested wisely to produce an annual stream of income for your lifetime from your CRT. What’s left in your CRT at your passing goes to the church or charity you designated.
Real Estate—-it’s been said that God isn’t making any more of it; however, what He made and what property you own can be incredibly important and valuable in your planning process during your lifetime and at the time we graduate to eternal life.
Please contact us anytime for brochures that describe these planning techniques and if you’d like to discuss how your real property can fulfill your charitable, income, and estate planning goals or for a referral to an attorney or financial professional. Thank you (and thank you, Lucy)!
p.s.: Want to have an immediate and constant impact for your stewardship at Summit Leadership? Please consider becoming an Exodus 17 Sustaining Partner at $17, 30, 50, or more monthly. It’s easy—you may sign up on-line at http://www.summitlife.org/donate May God Bless You!