Gifts of Real Estate
Consider supporting CSU with a gift of real estate. You can leave your property or the proceeds of a sale through your will or trust. Or, you can arrange for a life estate reserved or a bargain sale.
Life Estate Reserved: Deed your home or property to Cleveland State University, with the deed stipulating that you retain control and use of your home or property for the remainder of your lifetime and the lifetime of a spouse or heir (if you choose). You agree to maintain the property and continue to pay insurance and property taxes during your lifetime. When you (and your heir, if named) have passed, your home or property will belong to Cleveland State University, which will then use or sell the property to serve the purpose you stipulate in your Life Estate.
It is possible for you to make a gift of your property even though there is a mortgage upon the residence. You will receive a federal income tax deduction for the value of the remainder interest in your home or property. If, at some point in the future, you are no longer able to live independently in your home, we may be able to help you use your life estate to create a lump sum cash payment (with a joint sale) or create an income stream (using the life estate to fund charitable remainder trusts or charitable gift annuities).
Bargain Sale: Sell a property to CSU below fair market value and receive cash for the sale. Claim a charitable deduction for the difference between fair market value of the property and the sale price.
The benefits of a bargain sale are many. You avoid capital gains tax on your charitable gift, receive a tax deduction that will reduce your tax bill, and you can take the cash received from the sale and reinvest it to create future income, save for retirement, buy new property or achieve other financial goals. A bargain sale may be accomplished even if you have a mortgage on your property. Because relief from indebtedness can have tax implications, please consult with your tax advisor prior to completing a gift of a bargain sale.
To learn more about gifts of real estate, please contact us. We would be happy to assist you and answer your questions.
