Unlock the Potential of Your Property
Depending on the circumstances, giving real estate can generate tremendous benefits for you and your family. USF’s gift planning team regularly assists donors in evaluating this type of support.
How it Works
You can transfer all or a portion of the property to a charitable remainder unitrust, a special trust created for your benefit. The property is then sold and the proceeds are reinvested.
You receive a percentage of the trust’s annual value in life time payments.
You can decide how much of the property’s value you wish to transfer to the charitable trust. If you keep some of that value you can generate cash at sale.
Case StudyClick to Read
Double Dons Bill and Sally Forrest purchased a three unit rental property many years ago that is now worth $1,000,000. The Forrests, both 65, actively manage the building, but want more free time for golf and family.
By transferring the property to a charitable remainder unitrust the Forrests pay no tax on their $950,000 capital gain when the building is sold.
Bill and Sally receive a life-time cash flow from their gift amounting to 5% of the trust’s annual value.
Additionally the Forrests qualify for an charitable income tax deduction of $338,000.
When the trust concludes, the remaining funds will provide scholarships for first generation USF students.
Discover the Benefits
No capital gains taxes from your gift.
Life time cash flow.
Charitable income tax deduction that you can carry forward for up to five years.
Ease of management.
More after-tax income from the trust.
Can be combined with a 1031 exchange.
Tremendous satisfaction in supporting the future of Jesuit education at USF.
For Wally Gibson, It’s a Practical Way to Support USF
Wally ’55 and Judy Gibson were looking for a way to simplify management duties on various properties they owned, eliminate capital gains taxes, and generate a reliable income stream for themselves and their family.
The Gibsons worked with USF to create a life-income plan, consisting of a series
of charitable remainder trusts.
The couple customized the terms of each trust to address special factors associated with each gift of property. The result was a tax-wise plan that provides income to their family for 20 years and a very generous gift for USF’s endowment.Read more
For Wally Gibson, it’s a practical way to support USF. “Selling the properties from a charitable trust eliminated capital gains taxes and increased our monthly cash flow.”
Wally, a politics and history major, met Judy, a University of California business major, at a Lake Tahoe party in 1957, and they married six months later. They both believe in the power of education.
“Neither one of our parents had much schooling, but they supported education, and so do we,” says Stockton native Wally.
“The main thing I learned at USF is the importance of honesty,” says Wally. His education prepared him well to become a stockbroker.
Later, he changed direction and became a mail carrier so that he could balance his time more effectively and focus on his private investments.
“Our gift saved us taxes, and we set up our plan so that it benefits our children, too. It was extremely easy to do what we did. So much so, that we don’t know why more people don’t do the same.”
“Our life has been blessed, especially mine. Life has been so good to us, and I realize that. I’m grateful knowing that ultimately our life-income gift will support Jesuit education at the university.”
We provide this information to illustrate the potential financial benefits of supporting USF. These illustrations should not be viewed as legal, accounting or other professional advice. We encourage our alumni and friends to consult with their own legal and tax advisors before completing a gift.