Other Types of PlanneD GIFTS:

Any of the above gift plans can be placed in a testamentary plan as provided in a living trust document, will, or other testamentary device.

Bargain Sale
Those holding property not perceived to be readily marketable and who want an immediate cash return can receive an income tax deduction for the portion of the property contributed to a family foundation account. A bargain sale occurs when a donor sells appreciated securities (or other property) to his/her family foundation for less than present fair market value, intending to make a gift of the difference. A deduction is allowed for the difference between the property's fair market value and the reduced sale price.

Retained Life Estate

Many people plan to leave their homes to a charity in their wills. Naturally, they can't make those gifts now because they need their homes. You can now leave your home or farm to your own family foundation account and retain the right to live there for your life (the life of your surviving spouse or other person can also be added). You get a sizable current charitable income tax deduction. The tax deduction is taken the year the property is donated based on the appraised amount and may be carried over for five additional years. The amount of your tax savings depends on your age and the value of your home. A gift of your home now, with retained life residency for you, gives you the same estate tax benefit as a gift by will. In addition, you save probate costs and receive an estate tax deduction. Similar tax benefits are allowed for a gift of your farm, and you retain the right to use the farm for your life (and to have a survivor use it for life, if you like).

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