Planned Giving: Gift of Residence with Life Estate

When you donate your personal residence to Scripps Research, you earn an immediate tax deduction, and you can retain the right to live in and use your property for the rest of your life. You also may be eligible to earn supplemental income.

Life Estate Agreement

You can make a substantial gift of your home to The Scripps Research Institute without changing your day-to-day life at all. When you irrevocably transfer the title of your personal residence or farm to the Institute, you maintain exclusive use of the property for life while making a significant gift.

Although this property needs to be a personal residence that you use, it doesn't need to be your primary residence. It can be a vacation home or second home. As long as you have use of the property, you have all the rights and responsibilities of home ownership. You are responsible for maintenance, upkeep, insurance, and property taxes, and you are entitled to any income it produces.

Your immediate tax deduction equals the value of the remainder interest, which the IRS code calculates as the present value of the Institute's right to use your property in the future. With this gift, you bypass the capital gains tax and you lower your estate taxes. When the property transfers to the Institute, it is used as you directed.

This agreement does not include furnishings or personal property within your home. If you wish to donate personal property too, you can establish a separate gift agreement.

Life Estate Agreement with Gift Annuity

When you pair a life estate agreement with a gift annuity you enjoy all the benefits of a life estate — a charitable deduction, possible capital and estate tax savings, and retained exclusive use of your property — and you receive a fixed annual payment for life.

Your payment is determined by two factors: the value of the remainder interest and your annuity rate established by your age at the time of your gift.

For life estate plans, it is wise to consult with your attorney regarding the laws of your state.

For more information about gifts of residence with life estate retained, please contact Geoff Graham, Director, Planned Giving and Estates, at (858) 784-9365 or gcgraham@scripps.edu.