Example

Henry and Joan Henderson, ages 78 and 77, still live in the house in which they raised their three children. Henry and Joan are in good health and have no plans to move. Their house has appreciated greatly over the years and is now worth about $600,000. Their children are grown with homes of their own and have no interest in keeping the house in the family.

Henry and Joan would like to make a large gift to charity_name, but they don’t feel comfortable giving a significant portion of their investment assets away. They are excited to learn that they can give their house instead while continuing to live in it for as long as they wish. Their lifestyle won’t change at all as a result of their arrangement. They also are attracted by the income tax charitable deduction of about $267,920* that they can use immediately to reduce their income taxes if they itemize their income tax deductions.

Benefits

• Henry and Joan can continue to live in their home for the rest of their lives.
• They receive an immediate income tax charitable deduction of about $267,920*.
• They may deduct up to 30% of their adjusted gross income in the year of the gift. If they cannot use their entire deduction in the year of their gift, they may carry forward the balance for up to five additional years.
• They will provide major support to charity_nickname, currently worth $600,000.
• Their home is no longer in their estate, potentially saving estate taxes.

*Henry and Joan’s income tax charitable deduction may vary depending on the timing of their gift. Their ability to benefit from an income tax charitable deduction will depend on their ability to itemize their income tax charitable deductions.