In the examples below, the CCH'98 US Master Tax Guide was the source for the tax rate. Outright gifts made with appreciated assets further lower the net cost to the donor. Outright gifts can be made with virtually any assets, though some additional rules may apply. However, real estate, especially second homes or unencumbered investment property, can be an excellent gift mechanism which can provide significant tax relief to the donor. Just as in the example above, the capital gains from the appreciated real estate can be avoided.
Many donors look at timing as a particularly important aspect of making an outright gift.
One way to make a gift without transferring the asset immediately is to make a multi-year pledge with an end date for the gift transfer. This reveals your intentions, and allows for planning by you and by the institution which will benefit from your gift, without forcing you to compromise your ability to maximize the gift or the tax benefit. You should consult with your attorney about the applicability of tax laws and specific gift strategies to your own situation.