Retained Life Estate

If you own real estate that you do not wish to pass on through your estate but which you wish to enjoy throughout your life, then you may make a gift of the property to Dartmouth while retaining the use of it through your lifetime. The property may be your primary residence, a second home, farm, or forest land.

In return for such a gift, you can claim an immediate income tax charitable deduction equal to the present value of Dartmouth’s interest. Since you retain lifetime use of the property, the income tax deduction is less than the full appraised value of the property.

While you are living there, you continue to pay taxes and upkeep. Any capital improvements you make should be partially income tax deductible.

Since your home is transferred to Dartmouth now, the gift reduces your taxable estate, potentially providing additional family tax savings.