There are many ways to make a gift of real estate to EOFULA:
An outright gift;
A gift with retained life use - you can give a residence, vacation home or farm to EOFULA and occupy it during your single or joint lives. A first year income tax deduction will be available and the assets will be removed from your estate;
Life income - make a gift of real estate to EOFULA. EOFULA sells the asset and invests it in a gift annuity which pays a lifetime income; and
A bequest (will).
Example of a Real Estate Gift Used to Provide a Life Income
Mrs. Smith, age 70, desires to make a gift to EOFULA, but she needs current income. She has a duplex worth $200,000 acquired many years ago. She would like to sell it, but the substantial capital gains tax has precluded a sale of the property. Mrs. Smith decides to gift the duplex to EOFULA which in turn sells it. The money is reinvested in a charitable gift annuity at 7.2%. Her benefits are as follows:
Provides income tax charitable deduction;
Provides income of $14,400 per year for life
Avoids the capital gains tax at sale (a much smaller capital gains tax will be paid each year on the income);
Reduces estate taxes
Eliminates property taxes and management.