Here are some reasons you may want to consider a gift of real estate:
- You would like to make a gift to New YorkMedical College while retaining your cash and liquid assets.
- You are discouraged from selling appreciated property because of substantial capital gains tax liability.
- You own a rental or commercial property that has become a management problem.
- You are considering moving to a smaller home or retirement complex.
- You would like to receive lifelong income from your property.
Five ways to make a gift of real estate*
- Outright gift.
- Gift with retained life use. Give your residence, vacation home, or farm to New York Medical College and continue to use it during your and your spouse's lifetimes. You get an immediate income tax charitable deduction.
- Life income agreement. Give your property to a trust naming New York Medical College as the remainder beneficiary. The trust sells the property and invests the proceeds, paying you an income for life.
- Bargain sale. Sell your property to the university at a substantially reduced price and receive both cash and an income tax charitable deduction.
- Gift by bequest.
*Real estate gifts must have a net present value of $100,000 or more.
Using a real estate gift to fund a life income agreement
Mrs. A. wants to make a substantial gift to the College, but her limited annual income prevents her from doing so. She has a valuable building lot purchased 35 years ago. The threat of a large capital gains tax has kept her from selling the property and reinvesting the proceeds. By using her lot, valued at $120,000, to fund a 6 percent life income trust, Mrs. A. makes a gift to the College and increases her annual income at the same time. Her benefits include:
- Additional income for life, initially about $7,200 annually
- An income tax charitable deduction
- Avoidance of capital gains tax on the property when it is sold
- Reduction of future estate taxes
- Elimination of management concerns and property taxes
- An invitation to join the Legacy Society
- A gift to New York Medical College after her lifetime to support a program that she favored
To request brochures, specific gift examples, or other information, call 914-594-4550, send an email to the University Development Office at firstname.lastname@example.org, or write to:
New York Medical College
Valhalla, NY 10595
We will work with you and/or your advisors to ensure that after your lifetime your gift benefits an area of the College that is important to you.
The New York Medical College Planned Giving pages are intended to provide general information, not legal or tax advice about specific situations or problems. Donors are encouraged to consult a lawyer or accountant for legal or tax matters.