Life Estate Reserved
You may wish to contribute all or a portion of your personal residence or farm to UCI, but retain the right to continue to live in it for your lifetime. This gift arrangement is called a "retain life estate". Once the retained life estate ends, UCI may use or sell the property to support the campus' highest priorities or programs you have designated. Retained life estate agreements are not limited to a private residence or home, vacation homes make excellent gifts of this type.
Benefits of a retained life estate
- Receive an immediate income tax charitable deduction based on the remainder interest in your home or farm
- The property is no longer part of your taxable estate and passes to UCI immediately on termination of the life estate
- Can terminate your life estate early and receive second tax reduction
- Preserve your lifetime use and control of your home or farm
- Create a life estate based on more than one life. This will preserve the use of the property for you and a loved one, such as a spouse or dependent child
How a life estate works
- You deed your home or farm to UCI. The deed will include a provision that gives you the right to use your home or farm for the rest of your life and that of any other life estate party named in the deed.
- You and UCI sign a maintenance, insurance and taxes (MIT) agreement to explain that you will do your best to keep the property in good condition and that you will maintain property insurance and pay the property taxes.
- When the owners of the life estate have passed away, your home or farm will belong to UCI. We will use or sell the property to further our charitable work.
To learn more about a life estate, please contact us. We would be happy to assist you and answer your questions.
Life Estates Work for Spouses Too - The life estate can last for your life or based on your life and that of another person, such as a spouse or loved one.
Mortgage Debt - It is possible for you to make a gift of your property even though there is a mortgage upon the residence.
Maintenance Issues - You will be responsible for the maintenance, insurance and taxes on the property, just as you were prior to creating the life estate.
Life Estates Are Flexible - 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 a charitable remainder trust or charitable gift annuity).