What is life estate reserved?
Donors sign a Life Estate Agreement and a deed, transferring immediate ownership of the real estate to Thrivent Charitable Impact & Investing®; however, the deed states the donor retains the right to use the property for their lifetime(s). At the end of the donor’s life, Thrivent Charitable takes immediate possession of the property, and it does not go through probate. The property is sold and the net proceeds are allocated to the donors’ choice of charitable funds at Thrivent Charitable.
Gift Minimum: $200,000
- Client's name, birthdate, and tax bracket.
- Proposed gift amount including cost basis. Please distinguish between the value of land and the value of buildings and other improvements.
3. If your client wishes to proceed and establish a gift of real estate,
4. Review your compensation options from Thrivent or American Funds.
- Clients interested in making a gift of real estate, but who want to continue to use or rent out the property during their lifetime.
- Clients who wish to give real estate and bypass associated gains when it is sold.
- Clients who wish to remove the property from their estate now and avoid probate.
- Your client receives a charitable income tax deduction in the year of the gift equal to a portion of the appraised fair market value.
- For gifts of long-term appreciated real estate, the annual deduction limit is 30% of the donor’s AGI.
- Unused charitable deductions may be carried over an additional 5 years.
- A donor can use or rent the property until their death, at which time Thrivent Charitable takes possession.
- The property given is not subject to probate.
- Thrivent Charitable sells appreciated assets tax-free.
- Thrivent Charitable arranges for a joint sale of the property. The donor would receive a portion of the proceeds equal to the value of their remaining life estate interest.
- The donor can deed his/her remaining life estate interest to Thrivent Charitable and receive an additional income tax deduction for that gift.