Retained Life Estate
A retained life estate is a gift plan, defined by federal tax law that allows you to donate your property, such as a home, to Maranatha while retaining the right to use it for the rest of your life.
When you create a retained life estate, you irrevocably deed to Maranatha your property, but you can still use it for the rest of your life. While you keep the right to use your property, you must continue to be responsible for all routine expenses, such as maintenance fees, insurance, property taxes, repairs, etc. You may also be able to rent your property to someone else or sell the property in cooperation with Maranatha.
Properties can include primary residences, vacation homes, and farms.
How It Works
Evelyn and Bill’s lives changed when they went on a mission project to Zimbabwe, where they built a school. After that trip, they decided they wanted to help Maranatha in a big way with a donation. However, with all their assets tied up in their properties, they couldn’t give right away. After discussing their intentions with a Maranatha planned giving specialist, Evelyn and Bill decided to give their vacation home in Hawaii to Maranatha. However, they still planned on using the property for vacations, so they created a retained life estate. This would allow them to continue using the home or even rent it out during their lifetime.
- You will qualify for a federal income tax deduction.
- You will retain the right to use your property for the rest of your life.
- Your estate may benefit from reduced probate costs and estate taxes.