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7 Ways to Donate Real Estate

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© The Stelter Company The information in this publication is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results. Office of Planned Giving Brown University 401-863-9119 Planned_Giving@brown.edu Box 1893 Providence, RI 02912 5 ] Make a Bargain Sale A bargain sale occurs when you sell real estate that you've owned for more than one year to us for less than its current fair market value, subject to our agreement. After we purchase your property, three things happen: 1) you receive a cash payment from us for the sale price, 2) you receive a charitable deduction for the difference between the sale price and the higher fair market value, and 3) we receive the property at a bargain price. You benefit financially, and so do we. 6 ] Use Property to Fund a FLIP Charitable Remainder Unitrust Another approach is to use your property to fund what's known as a FLIP charitable remainder unitrust. Such a trust can be set up to make lifetime payments to you or any other recipient you name after the property is sold. At your death, we receive the balance (remainder) in the trust. Donating property to a charitable remainder trust may provide you with a number of potential benefits such as: • Up-front capital gains tax elimination on the increase in the property's value since you bought it. • An immediate income tax deduction for the value of the remainder interest. • Income from the trust for the rest of your life once the property is sold. • Reduce the cost of probate—the legal process of administering your estate after your death—by eliminating the property from your estate. • Relieve yourself of selling or maintaining your property. • Make a significant gift that we can access after your lifetime. 7] Establish a Memorial and Endowment Gift A gift of real estate is a perfect way to honor your loved one through a memorial or endowment type gift. If you have a family member or friend whose life has been touched by us, we hope you'll consider making a gift to us in honor of that person. Providing a gift establishes a living tribute that allows you to: • Honor a loved one or yourself. • Support our continuing efforts. • Receive a federal income tax charitable deduction. • Reduce or eliminate capital gains tax. When you make an endowed gift, your contribution is invested with and becomes part of our endowment. An annual distribution is made for the purpose you designate. Because the principal remains intact, the fund will generate support in perpetuity. Your real estate gift can fund an endowment you create or you can contribute to our already established endowment. Get Started Contact us today for more information about using real estate to support Brown. We would be happy to work with your attorney and other advisors in designing the most suitable plan for you.

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