If you wish to donate a property to charity but you still need to use it, we can help with that. This is known as a retained life estate gift, and it can provide significant tax benefits. You receive an immediate tax deduction, and the property is excluded from your taxable estate. At a designated point in the future, the property’s ownership is transferred to IRUSA’s waqf.

In a retained life estate, you continue to maintain the property and to pay property taxes. You can give up use of the property at any point. At that time, you would no longer be responsible for taxes or maintenance and would receive a further charitable income tax deduction.

Example:

A 75-year-old donor creates a retained life estate with a primary home valued at $250,000 in June 2017. She receives a tax deduction of approximately $175,000 and can remain in her home as long as she chooses.

Benefits:

  • You receive gift credit and an immediate income tax deduction for a portion of the appraised value of your property.
  • You can give up ownership at any time and take an additional income tax deduction.
  • You have the satisfaction of making a significant gift now that benefits IRUSA later.