You receive an immediate charitable income tax deduction for establishing a Gift Annuity. High effective rates of return, resulting from the income tax deduction and partially tax-free income, are enjoyed by our growing list of satisfied gift annuitants. A Life Estate arrangement is created with an irrevocable gift of a personal residence or farm for which you receive an immediate income tax deduction. The major difference between a Life Estate and an outright gift of such property is you retain full use of the property for your lifetime. You may continue to live in your house, or operate or lease your farm, and retain all the benefits of conventional ownership, even though you have deeded the property to the UND Foundation.
Donors remain responsible for maintenance, taxes and insurance.
Therefore, a lake cabin or vacation home qualifies for a Life Estate. A Life Estate may help you accomplish your goals of reducing the size of your taxable estate, reducing your current income tax liability, yet retaining lifetime use of your property. Above all, you are providing a significant gift for the benefit of the University of North Dakota. Appreciated property can be transferred into a CRT at its current market value, allowing you to benefit from its total appreciated value. This often results in more income for donors.