Life Estate Agreement

A life estate agreement is a way for a person to donate a home or farmland to charity when they are still living without having to vacate the property or give up any benefits while continuing to use the asset during their lifetime. A life tenant continues to receive any benefit the property produces while remaining responsible for the property such as taxes, insurance and cost of maintenance. A charitable tax deduction is received at the time of the gift. The property is directed to charity after the donor passes away. The benefits to the donor of setting up a life estate are:

  • Charitable tax deduction up to 30% of adjusted gross income with excess deduction that can be carried over for up to 5 years
  • Avoid capital gains tax on appreciated property
  • Reduction in gift or estate taxes
  • Donated property avoids probate and associated costs
  • Satisfaction of making a meaningful contribution to charity

Download a Life Estate Agreement flyer