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  • 1.  Counting and Receipting a Retained Life Estate

    Posted 03-24-2023 06:57 PM

    I found a couple of older discussions on counting and receipting a retained life estate from 2019 and 2020, but wanted to confirm and/or get a little more information for my leadership.  

    Basics:

    Donor obtains an appraisal on his property and deeds it to the charity. 

    A Retained Life Estate Agreement is signed between the parties.

    Charity records the appraised value of the property as a planned gift.  

    Alan Hejnal advised "... the receipt is essentially a quid pro quo receipt, identifying what has been contributed, and the value of what has been retained; typically derived from gift planning software."   

    So to confirm, charity would produce a receipt to the donor, but the agreement establishes the terms and donor's charitable deductions?

    Thank you for your advice.  

    Best, Dale



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    Dale Hailey
    Sutter Health Philanthropy
    dale.hailey@sutterhealth.org
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  • 2.  RE: Counting and Receipting a Retained Life Estate

    Posted 03-24-2023 09:31 PM
    Edited by Alan Hejnal 03-27-2023 07:19 AM
    It helps me to think about this as being similar to other irrevocable deferred gifts, say a charitable remainder unitrust. There is a transfer of an asset, a contract that sets the terms (within the parameters appropriate to the instrument), any specification of the use of the remainder interest, etc. Somewhere in the array of paperwork is something that functions as a receipt, or as the IRS would say a written acknowledgment, that meets the standards for a written acknowledgment. In this case, that would be a description of what was contributed, and the value of what the donor receives in return (in this case, the use of the property for the donor's lifetime). That may not look like a typical receipt, and will likely be generated by Planned Giving software that performs all the necessary calculations. The receipt is essentially a summary for tax deduction purposes of what is agreed to in the contract. 
    My US$0.02 worth; the usual disclaimers apply. 
    Good luck!
    Alan
    Alan S. Hejnal
    Data Quality Manager, Office of Advancement
    Sent from my mobile device; please excuse the inevitable typing/autocorrect infelicities. 




    Original Message


  • 3.  RE: Counting and Receipting a Retained Life Estate

    Posted 03-25-2023 11:53 AM

    Alan, this explanation is super helpful.  Thank you so much.

    Dale



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    Dale Hailey
    Sutter Health Philanthropy
    dale.hailey@sutterhealth.org
    ------------------------------

    Original Message


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