Retained Life Estates

What is a Retained Life Estate?

It is a charitable transfer of ownership of your home to World Vision in which you retain the right to continue to live there, rent free, for your lifetime or for a period of years. You continue to be responsible for ongoing taxes, structural maintenance, and upkeep. We mutually agree upfront about what we will do if you no longer wish to live in the house or are unable to continue living there.

Your charitable deduction for a retained life estate is the fair market value of your home, minus the present value of the life tenancy you have retained. You need to secure an independent appraisal of your home to establish its value for the deduction; World Vision’s Gift Planning Department can then calculate the deduction amount using actuarial factors.

What are the Advantages?

1. A retained life estate allows supporters of World Vision whose most valuable asset is their home – and who don’t want to move -- to direct some of that value to the World Vision missions they cherish.
2. The gift is a simple transaction involving limited paperwork and legal expense.
3. A retained life estate allows donors to make a significant gift to World Vision without affecting their cash flow or disturbing their lifestyle.
4. A retained life estate secures an income tax deduction for the donor even though he or she still has full use of the donated asset.

EXAMPLE (based on 6.0% IRS discount rate)
You and your spouse donate your home to world Vision, retaining the right to continue to live there for your lifetimes. The fair market value of the home is $250,000 (and there is no mortgage on the property). You are 70 and your spouse is 68.

Important: This example is for illustrative purposes only and is not intended as legal or tax advice. Consult your legal and tax advisors prior to making any decisions based on this data.

Email the World Vision Gift Planning Office, or complete the personal illustration form so that we can assist you.

Gifts of Other Assets

How to give other assets, such as: Retirement Plans, Real Estate, Closely-Held Stock, Partnership Interests, Tangible Personal Property, and Life Insurance.