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| Gift Annuity for Real Estate |
Jonathan purchased a home many years ago for $80,000. The home has appreciated substantially over the years and is now worth $420,000. Jonathan's wife of 45 years recently passed away. Jonathan has decided to sell the home and move in with his son and daughter-in-law so that he can spend more time with the grandchildren. However, he recognizes that even after using his $250,000 home exclusion, he will still face high capital gain tax from the sale of the property. Jonathan has been a volunteer at ASUMH and would like to find a way to sell the home, avoid tax and make a gift to them.
Jonathan: The home has turned out to be a good investment, but now that my wife is gone, I would like to spend more time with family. I recognize that if I sold my home I would pay high capital gain tax. I'm looking for a way to reduce the tax on the sale of my home and obtain a little more income for retirement. I don't need a lot to live on, but I do like to spoil the grandchildren. I also like the idea of fixed income that won't fluctuate with changes in the market.
 Jonathan called ASUMH and discovered that he could transfer his home in exchange for a large fixed annuity payment, based upon his age. Because the home was extremely marketable, it could be sold quickly by the charity, and Jonathan would avoid capital gain tax on the sale portion. His home exclusion could be used to offset the remaining capital gain on the income he received from the annuity contract.
Jonathan: I decided to transfer my home to ASUMH in exchange for the gift annuity and was delighted with the results. I avoided tax on the sale of my home and was able to receive a large annuity payment for my retirement. Best of all, because the payment was fixed, I did not have to worry about market fluctuations. Now, I can spend as much time with the grandchildren as I want!
Please note: The name and image above is representative of a typical donor and may or may not be an actual donor to our organization. Since your gift annuity benefits under federal rules may be different from this person, you may want to click here to view a color example of your gift annuity benefits based on your age.
For more information please select one of the following options:
1. If you would like to view a color presentation of a plan similar to that of Jonathan, please click one of these buttons.
2. If you would like to see your payout rate based on your age and value of your real estate, then click here.
3. If you would like to request a printed illustration of a gift annuity with your payout rate, then click here.
4. You may print a gift annuity tri-fold brochure. Click Here.
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