SHD Reun 312 - Shodair Children's Hospital

From the
Foundation
Director
Walter D. Long, Jr.,
Shodair Children’s Hospital
Foundation Director
Perhaps you've lived in your house
for many years. You've made improvements and
you're quite comfortable in your environment.
Retirement has given you more time to spend
working in your yard, planting flowers, and taking
care of your home.
Retirement has also given you time to think about
the legacy you'd like to leave to your favorite causes,
including Shodair Children's Hospital.
Your home has appreciated as a result of your
improvements and you'd like to remain there for
your retirement years. Your children or heirs have
homes of their own and don't want to take over the
maintenance of your home when you pass it to them.
You've decided that you can leave a legacy by
supporting Shodair through giving your home as a
gift to the hospital in your will. However, a gift in
your will does not provide any tax benefits to you
now. What if you could gift your home to Shodair
now, enjoy tax benefits from your gift, and live in
your home for the rest of your life?
You can.
Home,
Sweet Home
This article is intended to provide general gift planning information. Shodair Children's
Hospital and the Montana Children's Foundation are not qualified to provide specific legal,
tax, or investment advice, and this publication should not be looked to or relied upon as a
source for such advice. Consult your own legal and financial advisors before making any gift.
You can deed a personal residence, ranch or farm to
Shodair through a gift called a retained life estate.
The deed would outline the specifics, i.e., who is
responsible for what. For example, it would designate
that you and your spouse, as the property owners,
retain the right to live in or use the property for as
long as you wish. At the death of the second spouse,
the property becomes available to Shodair to sell or to
use in a manner that supports our mission.
What else takes place? Because this is a binding
transfer, you'll be entitled to a charitable income tax
deduction in the year you deed the property to Shodair
Children's Hospital. To calculate the amount of the
deduction, you'll need a qualified appraisal to
determine the property's fair market value. In addition,
the life expectancies of you and your spouse are taken
into consideration. The goal is to establish the amount
of the charitable gift you'll be making to Shodair—this
determines your charitable income tax deduction.
In contrast, if you gave the hospital this property
through a bequest in your will, there would not be a
charitable income tax deduction because your decision
is not binding—you can change your mind.
You and your spouse must maintain the property and
pay the costs such as insurance, property taxes, and
repairs. Thus, the operation of the retained life estate
is no different than ordinary ownership, except you
realize the immediate tax advantages that ownership
cannot provide.
If you'd like to have a no-obligation conversation
about this type of gift or other ways to support
Shodair Children's Hospital, please give me a call
at (406) 444-7560. Thanks for your support!
Sincerely,
Walter D. Long, Jr.
www.ShodairLegacy.org
6 Reunion