A retained life estate is a gift that allows an individual to donate his/her home (primary residence or vacation home) or farm to a charity while retaining the right to live in it for the rest of his/her life.
There can be substantial tax advantages to this type of gift.
You can irrevocably deed your home or farm to the charity but retain the right to live in it for the rest of your life or a term of years. While you (the donor) retain the right to live on the property, you continue to be responsible for all routine expenses, such as maintenance fees, insurance, property taxes, repairs, etc. When the retained life estate ends, the charity can then use the property or the proceeds from the sale of the property for the purpose you designate.
Contact Kimberly Stafford at firstname.lastname@example.org or 213.972.3141.
Disclaimer: LA Opera provides information intended to introduce certain concepts, and we caution prospective donors not to rely on it for any legal, tax, investment, or other purpose. We encourage those considering a gift to consult their professional advisors before making any gift.