Real Estate
There are many ways to make a gift of real estate to the AARP Foundation:
1. An outright gift;
2. A gift with retained life use — you can give a residence, vacation home or farm to the Foundation and occupy it during your single or joint lives. A first year income tax deduction will be available and the assets will be removed from your estate;
3. Life income — make a gift of real estate to the Foundation. The Foundation sells the asset and invests it in a gift annuity which pays a lifetime income; and
4. A bequest (will).
Example of a Real Estate Gift Used to Provide a Life Income
Mrs. Smith, age 70, desires to make a gift to the AARP Foundation, but she needs current income. She has a duplex worth $200,000 acquired many years ago. She would like to sell it, but the substantial capital gains tax has precluded a sale of the property. Mrs. Smith decides to gift the duplex to the Foundation which in turn sells it. The money is reinvested in a charitable gift annuity at 7.2%. Her benefits are as follows:
- Provides income tax charitable deduction;
- Provides income of $14,400 per year for life;
- Avoids the capital gains tax at sale (a much smaller capital gains tax will be paid each year on the income);
- Reduces estate taxes;
- Eliminates property taxes and management; and
- Affords eligibility to join the Heritage Society.
To learn more about your giving options, please contact:
Office of Planned Giving
Tel: 1-800-775-6776
Email: plannedgiving@aarp.org
