Retained Life Estate
A Retained Life Estate or Gift of Real Estate allows a donor to contribute a personal residence, vacation home, farm, condominium or commercial property to Baton Rouge General Foundation and retain the right to occupy the property until his or her death. This enables the donor to make a gift to the hospital and receive a current income tax deduction for the property's discounted value. It also allows the donor to enjoy the use of the property for the rest of his or her life.
Example of Retained Life Estate:Angela, age 65, a widow, deeds her home to Baton Rouge General Foundation, though she plans to live there for the rest of her life. The market value of the property is $400,000 (the house is $160,000 and the land is $140,000). Using the required IRS table to discount the gift based on Angela's life expectancy and a 1.6% charitable midterm federal rate and future depreciation of the house, her accountant determines her income tax deduction to be in excess of $175,000.
Whether you are creating a will or updating an old document, Baton Rouge General Foundation recommends that you seek the advice of estate and tax professionals, such as attorneys, accountants, or financial advisors, in developing your estate plan. Baton Rouge General Foundation cannot render tax or legal advice. For more information, please contact Baton Rouge General’s Foundation at Foundation@BRGeneral.org or (225) 763-4372.