Donate Your Home and Retain Life Possession

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For example: Mr. and Mrs. Hewson have lived in their home for the past 19 years. Their children are grown and independent. The Hewsons have sufficient other assets to ensure their needs and provide for their future care. The property is currently valued at $475,000. They can decide to donate their home to support a favorite charity while retaining the ability to stay there for the rest of their lives. They will continue to maintain the property and pay utilities, real estate taxes, and insurance premiums, just like before. Through this arrangement, they know their favored charity will benefit from the gift in the future. For now, they not only get to stay in their home, but they also receive an immediate charitable income tax donation of $217,000, which they can use in the year of the gift and for five additional tax years.