Retained Life Estate

What is a Retained Life Estate?

A Retained Life Estate is a giving arrangement that allows you to make a significant gift to the Academy Center of the Arts using your home or farm, while continuing to live there for the rest of your life or a specified period.

How It Works

1. You irrevocably deed your personal residence or farm to the Academy Center of the Arts.
2. You retain the right to live in and use the property for:
   • The rest of your life
   • A term of years
   • Or a combination of both
3. You continue to be responsible for:
   • Real estate taxes
   • Maintenance fees
   • Insurance on the property
4. The Academy Center of the Arts takes possession of the property at the end of the specified term.

Benefits of a Retained Life Estate

1. Immediate Tax Deduction: You qualify for a federal income tax charitable deduction for a portion of the property’s value, even though the Academy doesn’t take possession immediately.
2. Continue Living in Your Home: You can support the Academy while maintaining your current lifestyle.
3. Reduce Estate Taxes: The property is removed from your taxable estate, potentially reducing estate taxes for your heirs.
4. Avoid Capital Gains Taxes: You avoid paying capital gains tax on the property’s appreciation.
5. Create a Lasting Legacy: Your gift ensures your support for the arts continues beyond your lifetime.

Is a Retained Life Estate Right for You?

Consider a Retained Life Estate if you:

• Own your home, farm, or vacation property
• Want to continue living in or using your property
• Desire an immediate income tax deduction
• Wish to make a significant gift to support the arts in our community

Important Considerations

• The gift is irrevocable; you cannot change your mind later.
• You must obtain a qualified appraisal to substantiate the value of your gift.
• The property must be debt-free or have only a small mortgage balance.
• You should discuss this option with your heirs, as it will affect their inheritance.

How to Get Started

Work with your advisors and our team to draft and execute the necessary legal documents.

We’re here to help! If you have any questions about giving options, please contact our development office at [email protected]. 

Remember: Always consult with your legal and financial advisors before making any major gift decisions.