By: Laurie Valentine- COO & Trust Counsel
The current low interest rate environment has increased interest in legacy giving plans that use a factor tied to current interest rates to value the gift to charity. When interest rates are low, the value of the charitable portion of those giving plans is higher. One such plan is a gift of a remainder interest in real estate.
To give a remainder interest in real estate to charity, you simply deed property to a charity while retaining for yourself the right to full use and enjoyment of the property for a term of years or the rest of your life. At the end of your retained interest, the property is immediately owned by the charity.
The charitable gift is completed when you sign the deed giving the remainder interest to charity, not when your interest in the property ceases. That means you can take action now, but continue to have use of the property for whatever period works for your situation.
Real estate remainder interest gifts…a legacy gift plan that provides potential income tax savings to the giver now and a significant gift to charity in the future.
For more information, please call us at (502) 489-3533 or toll free in KY at 1(866) 489-3533.
The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.