A deed is a legal, public document which conveys ownership of real estate from one party to another. Through a retained life estate deed, you can donate your personal residence, farm, or vacation home to the university while retaining the right to live on and use the property during your lifetime or for a designated term of years. The various legal requirements involved in the transfer of real estate will be applicable when gifting through a retained life estate deed. You receive an immediate income tax deduction when the gift is made, and through the donation may also reduce estate taxes, all while contributing a valuable asset to the university.
 In retirement, Tommy and Tammy Tabernacle, who met at a "sock hop" during their freshman year at CUA, find themselves traveling back and forth between their colonial-style home in Gregorian Glen, a metropolitan suburb, and their beach house, affectionately named Capernaum Cove. Though they contemplated staying near the ocean permanently, they felt a need to retain their suburban home because it enabled them to see their children and grandchildren, and because it provided ample space for family visits. Secure in terms of their income, they recognized that they could benefit from an additional income tax deduction, and knew that their real estate holdings should factor significantly in their estate and financial planning. Conversations with fellow alums at a Senators Club luncheon revealed that some of their friends had similar situations. After following up with the university's development office, and working with their attorney, Enrique Encyclical, the Tabernacles deeded their vacation home to CUA, while retaining the right to live in it or rent it during their lifetimes. With the university in line to eventually benefit from the property, the Tabernacles will receive an income tax deduction in the year of the gift, and will have reduced the size of their estate for estate tax purposes. |
