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  • 1.  CGA question

    Posted 11-05-2024 02:38 PM

    Hi Everyone,

    Someone called us and was wondering if it was possible to set up a CGA based on a house.  She has a nephew who has some health issues and is trying to help him out. He owns a house, but she is thinking setting up a CGA could work for him so he doesn't have to worry about an income thing is, she is hoping he can continue to live in the house.  I honestly don't know how that could work, but I thought this is a question for AASP.

    While I don't think this is possible, any other suggestions would be very welcome.

    Thanks everyone.

    Wendy



    ------------------------------
    Wendy Chinn Peter
    Saint Mary's College of California
    etheldawg@gmail.com
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  • 2.  RE: CGA question

    Posted 11-05-2024 03:12 PM
    A Retained Life Estate might be a better option. However, you should not discuss these options with the donor; these conversations need to be between the donor and their financial planner.

    A CGA requires a donation of an asset and pays the donor a set amount of money for life. Yes, a house can be donated to fund a CGA. However, I do not know if those donations allow an individual to remain in the house (hence the retained life estate). The retained life estate does not create an income stream-just a nice immediate tax deduction.

    Here's a nice summary of Retained Life Estates:


    Anyway, there might be other better options for this donor to pursue. They need to talk to their tax/finance professionals. You do not want to give the above info.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


  • 3.  RE: CGA question

    Posted 11-08-2024 11:39 AM

    Thanks John.  I appreciate your help.

    Wendy



    ------------------------------
    Wendy Chinn Peter
    Saint Mary's College of California
    etheldawg@gmail.com
    ------------------------------

    Original Message


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