Alternatives to Home Ownership

Do you own a home and you're looking to lessen your tax burden? There are many options to consider when trying to leave more to heirs while reducing taxes.

Gift of a Retained Life Estate
You can make a gift to your favorite charitable organizations of a remainder interest in your real estate and receive tax benefits (from a charitable deduction for a significant portion of the real estate's value) while continuing to live in your home.

The property must be a personal residence or farm, but it does not have to be your primary residence. You must continue to pay real estate taxes, maintenance costs and insurance. The home should be mortgage free when creating the life estate.

Revocable Living Trusts
Placing your real estate in trust allows you to avoid probate costs on the property. In addition, if the property is located in another state, you may eliminate the need for separate probate proceedings in each state.

If the property passes to your spouse, you may structure the trust to avoid some estate taxes. With a revocable trust, you can revoke the trust at any time, providing flexibility if you change your mind.

Please contact Mary Ludwig, Development Director at 712-732-5127, for more information.

The information on this site is not intended as legal, tax or investment advice. For such advice, please consult an attorney, tax professional or investment professional.

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