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Retained Life Estate

One of your valued possessions, your home, can become a valued gift to Kingsbury Country Day School even while you are still living in it, and even if you want your spouse or other person to live there for life. This arrangement is called a retained life estate.

You Retain Rights, Responsibilities and Tax Savings

By deeding a home or property to us now, you can obtain a sizable income tax deduction this year. The amount depends on the value of the property and your age (and the age of any person given life use). In addition, you retain the right to rent your home or make improvements to it. You continue to have responsibility for maintenance, insurance and property taxes.

Example

Sarah, age 72, a widow, deeds her home to us, though she plans to live there for the rest of her life. The market value of the property is $800,000 (the house, $300,000, and the land, $500,000). Using the required IRS table to discount the gift based on Sarah's life expectancy and future depreciation of the house, her accountant determines her income tax deduction.

Any personal residence qualifies for this tax deduction--a farm (with or without the house), vacation home, condominium, even stock in a cooperative housing corporation.

Your gift to Kingsbury must be an irrevocable remainder interest. In other words, after your life use and that of any survivor, Kingsbury Country Day School receives the property outright.


Note: The information on this site is not intended as legal, tax, or investment advice. For such advice, please consult an attorney, tax professional, or investment professional.