Retained Life Estate

A donor may make a gift of their house to a charity and retain the right to live in the house for the remainder of their life. The donor receives an immediate income tax dedution for the gift. At the donor's death the house goes to the charity. A donor may continue to live in the home for the rest of their life and receive current tax deductions based on the remainder value of the property. At the end of their life, the property is transferred to the charity. The greater the age of the donor, the greater the proportion of the property value may be deducted from income taxes.