Real Estate

Gifts of Real Estate

Gift Annunity
Eastern Long Island Hospital accepts gifts of real estate as donations that are vital to our continued efforts to provide superior care.

Real estate gifts are pieces of property that donors permit us to sell, with the proceeds going to support our work. Examples include first and second homes, apartments and retail buildings.

If You Own Real Estate, You Have Needs

Owning real estate brings responsibilities and challenges — and creates wants and needs, especially as your situation changes over time. Real estate gifts can help property owners meet their own needs as well as support ELIH.

We Know Real Estate

Eastern Long Island Hospital is very familiar with this form of gifting and will help you obtain all of the information that you need to make an educated decision. Please contact our office at (631) 477-5164 for more information or to donate your real estate

FAQ’S

RETAINED LIFE ESTATES: VALUABLE FOR YOU AND FOR EASTERN LONG ISLAND HOSPITAL (ELIH)

How can a gift of Real Estate to ELIH be valuable for me and for ELIH?

Gifts to ELIH always benefit you as well as the hospital. Besides the potential for an income tax deduction, you receive the satisfaction derived from knowing that, thanks to your philanthropy, the ELIH experience will continue to be available to future generations of patients. However, in today’s economy, a planned giving vehicle called a retained life estate is particularly beneficial.

What is a Retained Life Estate?

If you own a residence of any kind—a primary residence, a vacation home or if you own a farm—you can give ELIH today the right to own the property when you die. You keep what’s called a life estate: the right to use the property for the rest of your life. You give ELIH what’s called a remainder: the right to own it when you die. You receive a tax deduction immediately.

Who can benefit from establishing a Retained Life Estate?

Anyone can benefit. And the older you are, the more you’ll benefit. Let’s assume that you and your spouse are each 60 years old. You decide to give ELIH the right to own your property (home or vacation home or farm) after you have both died. If that property is currently valued at $500,000, you will receive an income tax deduction of almost $215,000. By the way of comparison, a retained life estate gift of a $500,000 property by a 72-year old couple produces an income tax deduction of almost $296,000.

Why is it such an important time to do this?

The IRS values this kind of a gift based on two things: the age of the person establishing it and an interest rate that the IRS sets every month. The lower that interest rate is, the more the gift is worth to the person making the gift. At this writing, that interest rate is the lowest it has ever been. Therefore, the 72-year-old couple making a gift today will receive a $296,000 deduction. If a 72-year-old husband and wife had made the same gift a year ago, they would have received only a $214,000 deduction.

If I establish a Retained Life Estate in my home, what changes can I expect in my life?

Just as all the benefits of owning a property remain yours, so do all the responsibilities: you must maintain the property (shoveling the snow, keeping it painted), keep it insured, and pay the utilities. Basically, your life doesn’t change, positively or negatively, except that you will reap a hefty income tax deduction for the year of the gift. It’s particularly valuable if you were planning to leave ELIH that property when you died. Without a retained life estate, you would receive no income tax deduction. With it, the value of that deduction should put more money in your pocket. And if you don’t use the full deduction in the first tax year, you can carry it over for up to 5 more years, potentially reducing your income tax for 6 years.

When will I see the tax benefits?

In order to make the gift, you must record a deed saying that ELIH will own the property sometime in the future. The year that the deed is recorded is deemed the year the gift is made. If you make the gift this year—i.e. before January 1, 2010—the amount of your deduction is locked in this year; you will reap the benefits next April when you file your 2009 return.

What if my spouse survives me? Can he or she continue living in our home?

Yes. When you set up a retained life estate, you may stipulate that one or more individuals (for example, your spouse) be given the right to continue living in the residence after you die. And if you move out of the house and rent it, you can keep all of the rental income. However, if you decide to sell it, the ELIH needs to cooperate in the sale and you and ELIH will spit the proceeds. The IRS has established rates that determine who gets what.

FACT: Historically, low interest rates, combined with real estate prices that are depressed but likely to recover, may present a unique opportunity to maximize your benefits from a retained life estate gift.

Can a Retained Life Estate gift help me unlock some value from a vacation home that I had intended to sell?

Yes. A large income tax deduction can put substantial additional cash in your pocket today while you wait for the real estate market to recover. After the property recovers its value, you and ELIH can sell and split the proceeds. As the economy recovers, interest rates may return to their historically higher levels, which will increase your share of the property when it sells.

WE INVITE YOU TO CONTACT THE FOUNDATION/COMMUNITY RELATIONS OFFICE AT 631-477-5164 TO DISCUSS YOUR PARTICULAR SITUATION AND THE TYPE OF VEHICLE THAT MIGHT BE MORE APPROPRIATE FOR YOUR AGE AND FINANCIAL SITUATION.

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Email Print		ELIH Foundation ELIH Foundation Ensuring the quality of healthcare for future generations and furthering the mission of Eastern Long Island Hospital, the Board of Trustees at ELIH have established the ELIH Foundation. Board & Members Volunteer Call 477-5195 to leave your name and number or call the Volunteer Office at 477-5196 Monday--Friday or complete this form
	Gifts of Real Estate Eastern Long Island Hospital accepts gifts of real estate as donations that are vital to our continued efforts to provide superior care. Real estate gifts are pieces of property that donors permit us to sell, with the proceeds going to support our work. Examples include first and second homes, apartments and retail buildings. If You Own Real Estate, You Have Needs Owning real estate brings responsibilities and challenges — and creates wants and needs, especially as your situation changes over time. Real estate gifts can help property owners meet their own needs as well as support ELIH. We Know Real Estate Eastern Long Island Hospital is very familiar with this form of gifting and will help you obtain all of the information that you need to make an educated decision. Please contact our office at (631) 477-5164 for more information or to donate your real estate FAQ’S RETAINED LIFE ESTATES: VALUABLE FOR YOU AND FOR EASTERN LONG ISLAND HOSPITAL (ELIH) How can a gift of Real Estate to ELIH be valuable for me and for ELIH? Gifts to ELIH always benefit you as well as the hospital. Besides the potential for an income tax deduction, you receive the satisfaction derived from knowing that, thanks to your philanthropy, the ELIH experience will continue to be available to future generations of patients. However, in today’s economy, a planned giving vehicle called a retained life estate is particularly beneficial. What is a Retained Life Estate? If you own a residence of any kind—a primary residence, a vacation home or if you own a farm—you can give ELIH today the right to own the property when you die. You keep what’s called a life estate: the right to use the property for the rest of your life. You give ELIH what’s called a remainder: the right to own it when you die. You receive a tax deduction immediately. Who can benefit from establishing a Retained Life Estate? Anyone can benefit. And the older you are, the more you’ll benefit. Let’s assume that you and your spouse are each 60 years old. You decide to give ELIH the right to own your property (home or vacation home or farm) after you have both died. If that property is currently valued at $500,000, you will receive an income tax deduction of almost $215,000. By the way of comparison, a retained life estate gift of a $500,000 property by a 72-year old couple produces an income tax deduction of almost $296,000. Why is it such an important time to do this? The IRS values this kind of a gift based on two things: the age of the person establishing it and an interest rate that the IRS sets every month. The lower that interest rate is, the more the gift is worth to the person making the gift. At this writing, that interest rate is the lowest it has ever been. Therefore, the 72-year-old couple making a gift today will receive a $296,000 deduction. If a 72-year-old husband and wife had made the same gift a year ago, they would have received only a $214,000 deduction. If I establish a Retained Life Estate in my home, what changes can I expect in my life? Just as all the benefits of owning a property remain yours, so do all the responsibilities: you must maintain the property (shoveling the snow, keeping it painted), keep it insured, and pay the utilities. Basically, your life doesn’t change, positively or negatively, except that you will reap a hefty income tax deduction for the year of the gift. It’s particularly valuable if you were planning to leave ELIH that property when you died. Without a retained life estate, you would receive no income tax deduction. With it, the value of that deduction should put more money in your pocket. And if you don’t use the full deduction in the first tax year, you can carry it over for up to 5 more years, potentially reducing your income tax for 6 years. When will I see the tax benefits? In order to make the gift, you must record a deed saying that ELIH will own the property sometime in the future. The year that the deed is recorded is deemed the year the gift is made. If you make the gift this year—i.e. before January 1, 2010—the amount of your deduction is locked in this year; you will reap the benefits next April when you file your 2009 return. What if my spouse survives me? Can he or she continue living in our home? Yes. When you set up a retained life estate, you may stipulate that one or more individuals (for example, your spouse) be given the right to continue living in the residence after you die. And if you move out of the house and rent it, you can keep all of the rental income. However, if you decide to sell it, the ELIH needs to cooperate in the sale and you and ELIH will spit the proceeds. The IRS has established rates that determine who gets what. FACT: Historically, low interest rates, combined with real estate prices that are depressed but likely to recover, may present a unique opportunity to maximize your benefits from a retained life estate gift. Can a Retained Life Estate gift help me unlock some value from a vacation home that I had intended to sell? Yes. A large income tax deduction can put substantial additional cash in your pocket today while you wait for the real estate market to recover. After the property recovers its value, you and ELIH can sell and split the proceeds. As the economy recovers, interest rates may return to their historically higher levels, which will increase your share of the property when it sells. WE INVITE YOU TO CONTACT THE FOUNDATION/COMMUNITY RELATIONS OFFICE AT 631-477-5164 TO DISCUSS YOUR PARTICULAR SITUATION AND THE TYPE OF VEHICLE THAT MIGHT BE MORE APPROPRIATE FOR YOUR AGE AND FINANCIAL SITUATION.