Real Estate Giving Plans
House PlansLike many people, your house is probably the single largest asset in your estate. It represents a significant investment, something you paid faithfully for over the years. Consequently, it's only natural that you want to move cautiously in making any decisions about the future of your "Home Sweet Home." Nevertheless, you are willing to consider some new ideas.
To help you explore some of the options available to you, here are three "house plans" that involve you, your house and your interest in New Hope Community Church.
The Live-In Plan
Perhaps you intend to make a major gift to New Hope Community Church. In fact, you would even give your house if you could. One problem: you would have no place to live. You could, of course, simply bequeath your home to NHCC through your will.
Another way is to give your house to NHC now, but retain the right to live in it for the rest of your life. This could provide you with a current income tax charitable deduction -- something that wouldn't happen were you to make the transfer through your will. It would also remove the house from your estate, which could possibly save estate taxes.
The Charitable Trust Plan
This house plan is great for those who need additional retirement income -- and yet who still want to make a gift of their house. Here's an example of how it might work.
Mr. and Mrs. Jones have a house valued at $300,000. They bought it for $50,000 more than 30 years ago and now own it free and clear. Meeting with the NHCC director of planned giving, they learn they can divide the deed and put part of the house into a charitable remainder unitrust while retaining the other part to sell for cash to buy a condominium.
They like the idea that the trustee will assume the major role in selling the property, thus relieving the Jones of this hassle. Once sold, the trustee will invest the trust's share in securities to provide a life-time flow of income for Mr. and Mrs. Jones.
Additionally, since the trust is a charitable trust, Mr. and Mrs. Jones will obtain an income tax charitable deduction which they can apply against their taxable income.
The Part-Give, Part-Sell Plan
This option is similar to the previous one, except there is no charitable trust involved. The donors divide the deed and give one part to NHCC. The donors and NHCC then sell the house, each receiving their share of the proceeds. Because part of the deed goes to a qualified charity, the tax benefits are quite favorable.
As with most gift plans, there are variations to this plan providing an array of possibilities. In fact, the options are nearly endless.
The main point to all of this is to let you know there are various ways to use your house to meet your own needs as well as those of NHCC. Pastor Jerry Schmidt, our planned giving director, will be happy to discuss all of this with you and to provide various illustrations to show you more fully how planned giving and house planning can go hand-in-hand.
You may call Pastor Jerry for more information at 503-659-5683 x3041, or you can fill out the form below. There is, of course, no charge for his services.
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