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 Missouri Southern. Upon the death of the owner the Foundation will sell the property and reinvest the proceeds for future use by the University.
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 Missouri Southern Foundation. Mrs. Smith decides to establish a real estate remainder, deeding her home to the 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 benefit MSSU, 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.