A retained life estate is very similar to, say a charitable unitrust or charitable gift annuity, except the interest that the donor retains is the right to live in the property, rather than, say, retaining a stream of income payments. These are all completed irrevocable gifts, and should be receipted at the time that they are established. The receipt is essentially a quid pro quo receipt, identifying what has been contributed, and the value of what has been retained, and are typically derived from gift planning software.
These gifts are different from for example, bequest expectancies (provisions in the donor’s will), which are revocable, and not complete until the estate matures. Revocable gifts wouldn’t be receipted until they mature (at which point they become irrevocable).
My US$0.02 worth; the usual disclaimers apply.
Good luck!
Alan
Alan S. Hejnal
Data Quality Manager
Smithsonian Institution - Office of Advancement
600 Maryland Avenue SW, Suite 600E
P.O. Box 37012, MRC 527
Washington, DC 20013-7012
•: 202-633-8754 | •:
HejnalA@si.edu<mailto:
HejnalA@si.edu>
[SNAGHTML5cbfa34]<https://www.si.edu/> [AASP_FundSvcs_LOGO-01(040pct)(mark)]
From: Advancement Services Discussion List <
FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Walzer, Tatiana C
Sent: Monday, February 25, 2019 4:07 PM
To:
FUNDSVCS@LISTSERV.FUNDSVCS.ORG
Subject: Re: [FUNDSVCS] Processing Retained Life Estate Gifts
Thank you John. With our other planned gifts we typically send a thank you letter when we are notified of the inclusion but do not send a tax receipt sent until funds are received. My VP is telling me I need to generate a tax receipt right now for the retained life estate donors. Is this the case? The property was quick deeded to us.
Regards,
Tatiana Walzer
Assistant Director of Advancement Services
260-399-7700 ext 6402
From: Advancement Services Discussion List [mailto:
FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of John Taylor
Sent: Monday, February 25, 2019 3:47 PM
To:
FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:
FUNDSVCS@LISTSERV.FUNDSVCS.ORG>
Subject: Re: [FUNDSVCS] Processing Retained Life Estate Gifts
It definitely is a planned gift as you will not receive any assets to spend/use until the donor dies.
As with most planned gifts you record both the face value and the present value (the IRS deductible amount). You count the latter in your annual fundraising totals in your planned giving category - and that is what is reported in the VSE. If you are in a campaign, you count whichever of the values your campaign counting policy states.
John
John H. Taylor
Principal, John H. Taylor Consulting
2604 Sevier St.
Durham, NC 27705
johntaylorconsulting@gmail.com<mailto:
johntaylorconsulting@gmail.com>
919.816.5903 (cell/text)
Serving the Advancement Community Since 1987
On Mon, Feb 25, 2019 at 3:38 PM Walzer, Tatiana C <
TWalzer@sf.edu<mailto:
TWalzer@sf.edu>> wrote:
Greetings All,
I am seeking guidance on how to post and receipt a retained life estate gift. This is the first time I have worked with this type of gift. We will get the property after the donor and his wife pass away and a present value has been established.
Do I enter this as an outright gift right now, a planned gift for the future, both or some else? Also does the tax receipt need to include anything special? Thanks for your help.
Regards,
Tatiana Walzer
Assistant Director of Advancement Services
University of Saint Francis
Office of Institutional Advancement
2701 Spring Street
Fort Wayne, IN 46808
260-399-7700 ext 6402