Retained Life Estate

Through a retained life estate arrangement, you can donate your home to CFGP and continue to live there for your lifetime. You are entitled to an immediate income tax deduction for a portion of the appraised value. Moreover, the property is removed from your estate for tax purposes.

Should you decide to move out of your home, you and CFGP can sell the property together and divide the proceeds proportionately. Alternatively, you may be able to transfer your remaining life interest to CFGP in exchange for an annuity.

Benefits of Retained Life Estates:

  • Maintaining maximum use and enjoyment of your property throughout your lifetime
  • The amount of your tax deduction is based on your age and the value of the property. Immediately deduct the amount of your gift up to 30% of your adjusted gross income and carry over any unused deduction for five years
  • The property gift eliminates federal estate tax as long as the life estate was created for you and/or your spouse
  • If at any point you no longer wish to occupy the property, you can rent it to provide you with an additional source of income. Or, you can give CFGP the right to use the property for the rest of your life

How to make a Life Estate Gift:

You must submit a copy of a qualified appraisal with your income tax return for the year of the gift. Also, IRS Form 8283 must be submitted and signed by CFGP acknowledging receipt of the gift. CFGP carefully examines each piece of real estate prior to its acceptance as a gift.

Real estate gifts require a number of steps to complete. Contact the CFGP early in your planning to facilitate the efficient gathering of information

Act Now

Learn more about the steps in thoughtful planning. The Catholic Foundation of Greater Philadelphia is established to be a tool for you to leave a lasting and secure legacy. Use our request for information form to learn more.