You can donate your home, get a deduction, and continue to live there rent-free.

A Retained Life Estate is for you if...

• Your home is your principal asset, you want to continue to live there, and you can continue to maintain it.
• You're seeking an income tax deduction, not more income.

This creative gift plan transfers your house to Neighbors but reserves a free lifetime tenancy to you. You can make a significant gift to us with the most valuable asset you hold, yet not disturb your living arrangements or your cash flow. You will continue to be responsible for the house's ongoing taxes, structural maintenance and upkeep. Also, we mutually agree upfront about what we will do if you no longer wish to live in the house after you have donated it to us, or if you become physically unable to continue living there. Your gift will provide you with a charitable income tax deduction, based on the fair market value of your house minus the present value of the life tenancy you have retained.

Things to Consider:

• As with all gifts of real estate, we must review and approve the transfer.
• You will need to secure an independent appraisal of your home to establish its value for the deduction.
• If there is a mortgage or lien on your home it will complicate the transfer to us and could result in taxable income to you.

To learn more contact Dan Russell, Neighbors, Inc. Development Director, at (651) 306.2148 or dan@neighborsmn.org.

This is not professional tax or legal advice. Donors must consult their tax and legal advisors regarding their specific situation.