Gifts of Residual Interest

A Residual Interest gift is property you deed to the Foundation or other ministry today, while continuing to use it for the rest of your life, or a predefined term of years. You can donate land, buildings, artwork or other objects of value this way. The number of years you expect to retain an interest in the property and the current fair market value are considered when determining the value of your tax receipt. If the receipt exceeds 75% of your net income the year you make the donation, you can carry the excess tax credit forward for up to five years.

How a Gift of Residual Interest Works?

• You give property to LFC and retain the use of it for life
• The property is appraised to determine its value
• A deed or contract is drawn up and signed by you and LFC
• You receive an immediate charitable tax receipt for the current value of the residual interest based on the anticipated number of years you retain a life interest in the property, current fair market value and a discounted rate
• You continue to be responsible for real estate taxes, insurance, utilities and maintenance after transferring title