Planned Giving

Life Estate Gift

You may contribute real property to the University, either as a bequest or, more commonly, by a lifetime transfer, and realize significant tax benefits. Gifts of real property may consist of almost any type of property: a personal or recreational residence, a farm or ranch, a commercial building, subdivision lots or any undeveloped parcel of land. The gift may be for all of your interest in the property or an undivided fractional interest.

You may give property to Claflin University while retaining the right to occupy the residence or operate the farm. Such a gift of a remainder interest provides an income-tax charitable deduction for the present value of the remainder interest that frees up tax dollars into spendable income without causing any disruption in your lifestyle. In addition, this plan permits you to escape any potential capital-gain tax on the built-in appreciation.

Individual charitable goals and financial needs determine which of the following methods of giving real property is most appropriate for your situation.

Outright Gift
You transfer the property by deed to Claflin University and it is subsequently sold unless there is a special reason for holding the particular parcel of real property.

Life Tenancy Gift
Ownership of the real property may be transferred to Claflin University, but you retain the right to live on the property for your lifetime. You receive an income tax charitable contribution deduction for the present value of the remainder interest of the gift. Upon the death of the "life tenant," the property may be sold or used by the University.

Example:

Jean Maloney, 74 and recently widowed, has lived in her present home for 25 years and has no plans to move. To obtain present tax relief without altering her lifestyle, Mrs. Maloney gives her home to Claflin University while retaining the right to live in the home for life.

At the time of the gift, the residence is appraised at $250,000. This gift arrangement will provide an income-tax charitable deduction of $147,884 (the value of the charity's remainder interest). Since Mrs. Maloney's tax bracket is 28%, her total tax savings will be $41,408 (28% of $147,884). This is the amount by which her income tax will be reduced over the period she reports the deduction.

In the event Mrs. Maloney decides to move in the future, she will have several options: rent the property and collect the rent, give her life interest in the home to Claflin University in exchange for a stream of payments for life, or simply give her life interest outright and receive another deduction.

To make a gift or to request additional information about deferred charitable gift annuities, contact:

Sunya L. Young
Director of Planned Giving
Division of Institutional Advancement
400 Magnolia Street Orangeburg, SC 29115
Phone: (803)535-5704; Toll Free: (888)223-7103; Fax: (803)535-5371
E-mail: syoung@claflin.edu

The information provided on this website is for informational purposes only and is not intended as legal, tax or investment advice. Please consult your accountant, financial advisor or attorney to assist you in determining which planned giving option is most appropriate given your financial goals and objectives.