A retained life estate enables a donor to give a residence, vacation home or a farm to Carroll College while still retaining full use and possession of the property for as long as the donor or another designated person (e.g., spouse) lives. The donor receives an immediate charitable income tax deduction when the property is deeded to the college based on the fair market value of the property and the age of the donor and/or other designated person. The donor also avoids any capital gains tax on the appreciation of the property. The donor does, however, remain responsible for the maintenance of the property including all taxes, insurance, upkeep, etc., for his/her lifetime. The college assumes this responsibility when it takes possession of the property. For a gift of appreciated property, a donor may claim a charitable income tax deduction for up to 30% of the adjusted gross income. Donors of appreciated property should consult with a tax advisor regarding this type of gift.

Contact Marc R. Barbeau, senior advancement officer for gift planning and estate services, Carroll College, 100 N. East Ave., Waukesha, WI 53186, (262) 524-7241 or mbarbeau@cc.edu.

The information on this web site is not intended as legal advice. For advice and assistance in specific situations, the services of a professional advisor should be obtained.