Our donors sometimes wonder if they should make a gift of real estate during their lifetime or wait until their passing (using a bequest in their will or trust). While making a gift of real estate by bequest lets you retain control of the property should you need it to meet personal needs in the future, if you have other resources to rely on, there are definite advantages to accelerating your gift for you to consider. One significant advantage is that you will receive a federal and state income tax charitable deduction in the year you make the gift (see Tax Savings).

By giving your real estate to Brandeis University while you are living, you can experience the immense satisfaction of seeing your gift in action. Brandeis will promptly sell the property, and the cash proceeds will be immediately put to work as you desire.

Peace of Mind

Peace of mind comes from a lifetime gift in several different ways. One is knowing that the gift is made and that nothing will intervene to delay your transfer down the road. In addition, the executor of your estate will not have to deal with the property when you are gone. Otherwise, your executor, who may well be a friend or loved one, must step in and manage the property until it is deeded over to Brandeis.

Also, you are instantly relieved of ownership concerns and worries. No more management duties and responsibilities; no more real estate taxes or property insurance to pay; no more potential, however remote, for any personal liability.

Tax Savings

As long as you have owned the real estate more than one year, you will receive an income tax charitable deduction in the year of the gift for the full fair market value of the property, even if it has grown in value since you purchased it. This means you can save on both federal and state income taxes immediately, giving you more cash to spend today on the things you need or want.

In addition, there will be no tax due on the property’s accrued capital gain. This means that you will not only save on income taxes, but also do so with a deduction based partly on appreciation that was never taxed.

Income tax charitable deductions for gifts of appreciated real estate are limited to 30 percent of adjusted gross income in one year. Any deduction that can't be used in the first year can be carried over for five additional years.