Gifts by Will or Bequest Charitable gifts of real estate also may be made through your will or living trust. You would avoid potential future estate taxes and your family would not have to deal with upkeep and sale of the property, liability insurance and property taxes. Should you be interested in this gifting arrangement., the San Antonio Area Foundation can provide suggested legal language to be used by your attorney.
Life Estate Reserved If you want to retain the use of property for the remainder of your and your spouse's life, you may still be able to gift it to the San Antonio Area Foundation now and receive an immediate income tax deduction for a portion of the current fair market value of the property. This special type of gift is referred to as a "life estate reserved."
Outright Gift You can make an outright gift of real estate to establish a donor advised, designated or field of interest fund and enjoy charitable giving while you are still living.
An outright gift of real estate entitles you to receive multiple tax benefits:
A charitable income tax deduction for the fair market value of the donated property held for more than one year;
The avoidance of capital gains tax that would have been incurred if the property wer sold directly by the donor;
The avoidance of potential future estate taxes on the gifted property.
Charitable Remainder Unitrust This option works best if you have highly appreciated, low-yielding real estate. You may want to give the property to a special giving vehicle called a charitable remainder unitrust, often called a CRUT. Through a CRUT, you make an irrevocable gift now but receive substantial tax benefits and an income stream for the remainder of your life, as well as for the life of your spouse.
Benefits include:
The avoidance of capital gains tax from an outright sale of property;
An immediate income tax deduction for a percentage of the fair market value of the property;
The avoidance of future estate taxes on the gifted property;
