Oklahoma Conference of the United Methodist Church

Legacy Planning Using Real Estate – Part 4


Real estate is an excellent asset to give to your favorite United Methodist cause or causes. The best method of making a gift of real estate depends on your individual situation and goals, both personal and financial. During this four-part series, we have explored options for making gifts using real estate. The various options outlined below offer flexibility in financial, estate, and legacy planning:

OUTRIGHT GIFT The outright gift of real estate held for over a year is the most advantageous method for income tax purposes, and its benefits are immediately available to the charitable organization.

BARGAIN SALE If the property’s fair market value exceeds the value that you want to give, the property can be sold to the charitable organization for a price that is significantly below the value but above your cost basis. The difference between the fair market value and the selling price is considered a tax-deductible gift for income tax purposes.

PART GIFT - PART SALE If you have property that you are planning on selling and you would like to make a gift to a charitable organization, it is advantageous from a tax standpoint to deed a portion of the property to the organization prior to the sale. See Legacy Planning Using Real Estate – Part 1, August 8 issue of Contact, for more details.

CHARITABLE REMAINDER TRUST If you need income for retirement, you can fund a trust for the benefit of a charitable organization which makes payments to one or more beneficiaries. At the death of the last beneficiary, the assets remaining in the trust are used for the charitable purposes chosen by you. See Legacy Planning Using Real Estate – Part 2, August 29 issue of Contact, for more details.

LIFE ESTATE RETAINED If you are not sure that you want to give up the use of the property, consider gifting the property to the charitable organization while retaining the right to use the property for your lifetime or lifetimes. See Legacy Planning Using Real Estate – Part 3, September 19 issue of Contact, for more details.

BEQUEST FROM YOUR WILL OR TRUST This allows you to make a large gift at no immediate cost to you. This could be your greatest act of stewardship. There is an estate tax deduction with no limit on the amount. Many tithe their estates.

If you are interested in exploring the various real estate gift options, please contact David Battles, CPA, at 800-259-6863 or dbattles@okumf. org. There is no obligation, and all inquiries are confidential.

Your gift of real estate to your favorite Methodist cause orcauses could change lives!

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