Barbara lived in the family home where she and her spouse had raised their three children. After her spouse passed away, Barbara found it increasingly difficult to care for her property.
Barbara's grandson came often to visit and help with chores around the house. On one such visit, he helped Barbara "surf" the internet. She discovered weekly finance updates and donor stories on JCF's planned giving website. On one such visit, Barbara learned that she could make a gift of her home to charity and receive income for life.
Barbara: I called JCF and asked how a charitable remainder unitrust works. She said that when the time came for me to move out of my home, I could give it to JCF and set up a special kind of trust. The trust would provide me with income for the rest of my life, and I would receive a tax deduction for my gift. In addition, my gift would create an endowment fund to benefit the community. This was something that really inspired me. I could even memorialize the fund in my late husband's name, so that meant a lot.
Barbara thought that she might want to move to a condominium with less upkeep. Her financial advisor reviewed the plan and said that the income she received from the charitable remainder trust would be enough to cover her living expenses.
Barbara: After visiting real estate websites with my grandson, I found a condominium nearby that was perfect for me. I called JCF and said that I was ready to move out of my home and set up the charitable trust.
Barbara was thrilled that she could turn her property into income to meet her future needs, receive a charitable deduction for her gift, and leave a meaningful legacy.
Is a gift of your home to fund a charitable trust right for you?
Your home has been one of your best assets, but after the kids move out and the house gets harder to care for, you may have other needs. Largely better than a reverse mortgage, a unitrust is one strategy to "downsize" your home, avoid capital gains tax, and provide you with ongoing income. Plus, you will be leaving an endowed legacy with JCF to benefit countless others.
If you have questions about how a unitrust could help you downsize, please give us a call. We would be happy to answer questions that you might have.
*Please note: The name and image above are representative of a typical donor and may or may not be an actual donor to our organization. Since your unitrust benefits may be different, you may want to click here to view an example of your benefits