Your Home Can Provide Versatile Gift Options

The currently prevailing historically low interest rates directly affect the discount rate the IRS uses to value so-called split-interest charitable gifts (e.g., charitable remainder trusts and gift annuities). Generally speaking, the lower the interest rate, the lower the value of the charitable deduction.

A major exception to this rule in which a lower IRS discount rate produces a higher charitable deduction is for a gift of a remainder interest in a personal residence or farm. Under this arrangement, the donor makes a gift of a residence or farm and retains the right to occupy the property for life or until such time the donor decides that he or she wishes to move for whatever reason.


A substantial tax deduction and tax saving that frees up tax dollars into spendable income without causing any disruption in the donor’s lifestyle. In addition the donor will escape capital-gain tax consequences, if any.

Moreover, the term personal residence is broadly defined in the tax regulations to include any property used by the owner as a personal residence (e.g., a condominium, a vacation home, and even a boat).

Please let us know if such an arrangement would be of interest to you.

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