Charitable Life Estates
With a charitable life estate gift you can deed your home or farm to Montana State University but keep the right to use the property for the rest of your life. You will be able to make a gift to Montana State University that counts as an immediate charitable deduction and continue living in your home or operating your farm or ranch.
A Possible Scenario
Bill Johnson, 75, and his wife Mary, 73, have a home in Bozeman. Their three children each have families and careers outside the state, and don’t plan to return to Bozeman. Bill and Mary would like to donate the property to Montana State University, but they want to continue living in their home during their lifetimes. They establish a charitable life estate gift with the MSU Alumni Foundation, deeding their $450,000 home to Montana State, while retaining the right to live in the home during their lifetimes. Bill and Mary continue to be responsible for maintenance, insurance and taxes on the property, but receive an immediate charitable deduction for the gift. Based on the IRS rates, MSU will calculate the present value of its remainder interest in the residence. In this case, Bill and Mary are entitled to a charitable deduction of $320,000 for their gift as well as a Montana Endowment Tax Credit of $20,000.
You receive a federal income tax deduction for the present value of the remainder interest in your home or farm. The present value of the remainder interest is based on the value of the property and the land, sales costs, and the appreciation rate of the property.
Donors paying taxes in Montana are also eligible to receive the Montana Endowment Tax Credit.
You preserve your lifetime use and are able to use and control you property while you are alive.
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- Contact Samantha Beebout at 406-994-7099 or firstname.lastname@example.org to discuss the possibility of giving real estate through a charitable life estate gift to Montana State University.
- View our gifts of real estate policy.
- Seek the advice of your financial or legal advisor to make sure this gift fits your goals.
- If you include MSUAF in your plans, please use our legal name and federal tax ID.
Legal Name: Montana State University Foundation, Inc.
Address: 1501 South 11th Avenue, Bozeman, MT 57915
Federal Tax ID #: 81-6001649
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results. Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.