Planned Giving for Financial Advisors
Real Estate
How they work
- Your client deeds a home, commercial or investment property, vacant lot or farmland that she has owned for more than a year to Gaylord Hospital. The donation can be made outright for Gaylord Hospital’s immediate use, or it can be used to create a Charitable Gift Annuity, a "Flip" Charitable Remainder Unitrust, or a Charitable Bargain Sale.
- Your client may also create a life estate interest, in which she retains the right to live in/at the property during her lifetime and Gaylord Hospital receives the property later.
- Your client claims an income tax charitable deduction for the value of her contribution.
- Gaylord Hospital may use property donated outright for its charitable purposes, or, more likely, will sell it and apply the proceeds to the purposes your client specifies. We will sell promptly any property intended to fund a life income gift or charitable bargain sale.
Benefits for your client
- For outright gifts, your client will receive an income tax charitable deduction for the fair market value of the real estate, regardless of the original purchase price. For gifts used to create a life income arrangement or charitable bargain sale, she will receive a tax deduction for fair market value for the charitable portion of the contribution.
- Your client will pay no capital gains tax on an outright gift of real estate. She will avoid capital gains on the charitable portion of a life income gift or charitable bargain sale.
- Your client will have transferred the burden and expense of managing the property, removed a large asset from her taxable estate, and created a meaningful gift to Gaylord Hospital.
- Real estate can be given outright for a maximum charitable deduction, or it can be used to fund Charitable Gift Annuity, a "Flip" Charitable Remainder Unitrust, Retained Life Estate, or a Charitable Bargain Sale.