Life Estate Reserved
You may desire to leave your home or farm to Catholic Community Foundation of Minnesota at your death but would also like to receive a current charitable income tax deduction. A life estate reserved might offer the solution you need!
Benefits of a Life Estate Reserved
- Receive a federal income tax deduction for the value of the remainder interest in your home or farm.
- Preserve use and control of your home or farm for the remainder of your lifetime.
- 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 Catholic Community Foundation of Minnesota. 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 Catholic Community Foundation of Minnesota 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 Catholic Community Foundation of Minnesota. We will sell the property with proceeds allocated to the charitable organization that you designate.
To learn more about a life estate, please contact us. We would be happy to assist you and answer your questions.