Remainder Interest Gifts
It is possible to receive an income tax charitable deduction while retaining the use of the property during a person's lifetime by giving a house or farm to a charity. This arrangement is known as a gift of a "remainder interest."
When choosing this option, the donor transfers the property to Baptist Foundation of Texas for the benefit of the Baptist institution of the donor's choice while retaining a life estate. This means the donor uses the property throughout his or her lifetime, and upon the donor's death, the property automatically passes to the Baptist institution specified by the donor. An individual utilizing this arrangement is still responsible for insurance, maintenance, and upkeep of the property. In turn, the donor receives an income tax charitable deduction in the year of the gift, based upon the present value of the charity's right to the property at the donor's death.
For additional information about making a remainder interest gift of a home, farm, or other real estate, please feel free to contact the Trust Division.