Giving through
a Real Estate
Remainder

MISSOURI SOUTHERN FOUNDATION

In Support of Missouri Southern State University

In some cases people hold property that can be used as a future gift to the Missouri Southern Foundation. Donors can make a gift of the property by deed to the Foundation while retaining the use of the property for their lifetime. If the property, such as a farm or rental property, generates income the donor can continue to manage the operation and receive the income for as long as they live. They will receive an income tax deduction for a portion of the value of the property and be able to make a sizable contribution to the College. Upon the death of the owner the Foundation will sell the property and reinvest the proceeds for future use by the College. Some advantages of the Real Estate Remainder are:

• The donor retains the use and any income generated by the property for life.

• A portion of the value of the property is treated as a charitable deduction. The exact amount of the deduction depends on the age of the donor, and other factors.

• Since the property is passed by deed it will bypass probate, and not become part of your estate thereby avoiding estate taxes.

• Since the assets are not considered part of your estate, they pass directly to the Missouri Southern Foundation insuring your privacy by avoiding public scrutiny as part of the probate process.

• Your assets are not subject to probate costs.

Here is one example of a charitable Real Estate Remainder:

Mrs. Smith is a widow, has three children living in another state, and owns a large home. She would like to leave most of the assets in her estate to her children, but also wishes to make a gift to the College. Mrs. Smith decides to establish a real estate remainder, deeding her home to the Missouri Southern Foundation while retaining the use of the house for the remainder of her life. In doing so she is able to make a charitable contribution to the College, receive a sizable tax deduction, and leave the majority of her estate to her children.

This is only one example of how a real estate remainder can be used to meet the needs of a donor. In all cases, donors should consult their attorney, accountant, or estate planner when considering gift giving.