Deferred Gifts of Vacation Property

Andrew owns an A-frame mountain lodge in a resort area. He planned to leave us the lodge as a memorial to his late parents, who built it as a vacation retreat in the 1960s. However, his advisers have pointed out that he can make the gift now, qualify for an income tax deduction, and continue to enjoy the lodge for the rest of his life. It’s called giving a “remainder interest” while keeping a “life estate,”and has the same end result as a will: a gift when Andrew dies. But Andrew gains an important charitable gift deduction today, based on his current age, the present value of the building and other factors. His tax savings can be invested to provide him with more income in retirement, when he plans to spend a lot more time at the lodge.


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