Life estate example
Jack and Esther have lived in the same home for 30 years. They are happy and fully intend to remain in the home for the rest of their lives. At age 77, they are enjoying their retirement years. They have no children and intend for their home, now valued at $350,000, ultimately to be used to benefit the Center for Peace and Justice affiliated with George Fox University.
Jack and Esther decided to deed their home to George Fox now and retain a life estate. This gives them the right to live in their home and use the property as long as they live.
They receive an immediate income tax deduction for a portion of the home's value. At age 77, that deduction is $178,875.
|FMV of home||$350,000|
|Income tax deduction||$178,875|
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