Gifts of Property

Gifts of Property

Donors can contribute real estate such as their residence, vacation home, farm, commercial property, or undeveloped land to the Monticello Area Education Foundation.

These gifts can receive the same tax treatment as gifts of securities: no capital gains tax plus deductibility at fair market value.

Usually, the Monticello Area Education Foundation will accept gifts of real estate if there are not restrictions placed on selling the property. A donor can also transfer title of a personal residence or farm to the foundation and retain the right to live in or use the property for life. After the death of a surviving spouse, the property comes to the Foundation. A current gift of a home or farm with retained life possession gives the same tax benefits as a gift by bequest - plus immediate income tax savings. Probate costs may be saved as well.

Another charitable property gift mechanism is the bargain sale in which the donor sells property to the Foundation for less than its full fair market value and deducts the difference as a charitable contribution.

Deferred gifts benefit an individual or an institution at some future date. Such gifts are the result of careful planning that integrates a donor's charitable gift into his or her overall financial, tax, and estate planning objective so as to maximize benefits for both the donor and the Monticello Area Education Foundation. Planned gifts typically come from a donor's assets rather than income and can be outright gifts, deferred gifts, or a combination of the two.

Each of the deferred giving instruments summarized below is closely regulated by law and requires special arrangements and tax treatment. Deferred Gifts include: Bequest in a Will or Living Trust, Life Income Gifts, Charitable Remainder Unitrust, Charitable Gift Annuity, Deferred Gift Annuity, Retained Life Estate, Retirement Accounts, Life Insurance, and Charitable Lead Trusts.