WHAT IS A RETAINED LIFE ESTATE?
A retained life estate is a gift plan defined by federal tax law that allows you to donate your home or farm to MidAmerica Nazarene University while retaining the right to live in it for the rest of your life.
As the creator of a retained life estate, you irrevocably deed to MidAmerica Nazarene University your home or farm, but retain the right to live in it for the rest of your life, a term of years, or a combination of the two. You may also use a vacation home to create this kind of gift.
While you retain the right to live on your property, you continue to be responsible for all routine expenses - maintenance fees, insurance, property taxes, repairs, etc. If you later decide to vacate your property, you may rent all or part of the property to someone else or sell the property in cooperation with MidAmerica Nazarene University.
When your retained life estate ends, MidAmerica Nazarene University can then use your property or the proceeds from the sale of your property for the purpose you designate.
1) You will qualify for a federal income tax deduction. Note that deductions for gifts of long-term appreciated property will be limited to 30% of your adjusted gross income and gifts of cash and non-appreciated property will be limited to 50% of your adjusted gross income. You may, if necessary, take unused deductions of either kind over the next five years, subject to the same 30% or 50% limitation.
2) You will retain the right to live on your property for the rest of your life, a term of years, or a combination of the two.
3) Your estate may enjoy reduced probate costs and estate taxes.
4) You will provide generous support of MidAmerica Nazarene University.
To receive a proposal based on actuarial calculations contact Tim Keeton at 913-971-3607 or firstname.lastname@example.org.
This information is for educational purposes only and should not be considered legal, accounting, or other professional advice. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.