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| Gift Annuity for Real Estate |
The following illustration represents a potential scenario faced by faithful supporters of Family Research Council. The names and pictures in the story are not that of actual FRC partners.
Years ago, William purchased a home for $80,000 and now it has appreciated to a substantial value of $420,000. After the recent passing of his wife of 45 years, the home seems to be more than he needs. If he were to move in with his son and daughter-in-law, he could spend more time with the grandchildren. The problem is if he sold his house, even after using his $250,000 home exclusion, he would still face high capital gain tax from the sale of the property. As a friend and supporter of Family Research Council in this scenario, there are ways FRC could help him sell the home, avoid tax and instead make a gift to one of his favorite organizations.
William's Predicament: His home has proven a good investment, but now with his wife gone, children and grandkids play a new role in William's life. Because the sale of his home would trigger a substantial tax on the capital gain, he recognizes that would reduce income for his retirement. He doesn't need a lot to live on, but would like to spoil the grandchildren a little. The idea of a fixed income that doesn't fluctuate with the market may also be intriguing.
In scenarios like this, friends of the Family Research Council have learned they could transfer their home in exchange for a large fixed annuity payment, based upon their age. If the home is extremely marketable, a quick sale by the charity allows someone like William to avoid capital gain tax on the sale portion. Then, the home exclusion could be used to offset the remaining capital gain on the income received from the annuity contract.
William Potential Solution: Transferring his home to Family Research Council in exchange for a gift annuity would bring multiple positive results. William would avoid tax on the sale of his home, receive a large annuity payment for the rest of his retirement and support a cause in which he strongly believes. Finally, because the payments are fixed, there are no concerns with market fluctuations. This may help William spend all the time with the grandchildren he wants!
Please note: William's image and name are merely a representation and conglomeration of several supporters of Family Research Council, but he is not actual donor. Since your gift annuity benefits under federal rules may be different from this scenario, you may want to click here to view a color example of your gift annuity benefits based on your age.
For more information please select one of the following options:
1. If you would like to view a color presentation of a plan similar to that of Jonathan, please click one of these buttons.
2. If you would like to see your payout rate based on your age and value of your real estate, then click here.
3. If you would like to request a printed illustration of a gift annuity with your payout rate, then click here.
4. You may print a gift annuity tri-fold brochure. Click Here.
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