Life Estate Reserved
You give your property to the Missouri State University Foundation but retain the right to use the property during your lifetime. We receive the property when you pass away.
Benefits of a life estate reserved
- Receive a federal income tax deduction for the value of the remainder interest in your home or farm
- Preserve your lifetime use and control of your home or farm
- Create a life estate based on your lifetime or more than one life. This will preserve the use of the property for you and a loved one, such as a spouse or dependent child
- Your tax advisor and/or attorney can assist you in setting up a life estate reserved gift
Life estate reserved video
How a life estate works
- You deed your home or farm to the Missouri State University Foundation. The deed will include a provision that gives you the right to use your home or farm for the rest of your life and that of any other life estate party named in the agreement.
- You and the Missouri State University Foundation sign a maintenance, insurance and taxes (MIT) agreement to explain that you will do your best to keep the property in good condition and that you will maintain property insurance and pay the property taxes. Your attorney will help you draft this agreement.
- When the owners of the life estate have passed away, your home or farm will belong to the Missouri State University Foundation. We will use or sell the property to help support your designated area at Missouri State University. Please contact us if you are considering this gift so we can ensure the best use of your gift to discuss how a Life Estate Retained might work for you.
Other considerations
- Life Estates Work for Spouses Too—The life estate can last for your life or based on your life and that of another person, such as a spouse or loved one.
- Mortgage Debt—It is possible for you to make a gift of your property even though there is a mortgage upon the residence.
- Maintenance Issues—You will be responsible for the maintenance, insurance and taxes on the property, just as you were prior to creating the life estate.
- Life Estates Are Flexible—If, at some point in the future, you are no longer able to live independently in your home, we may be able to help you use your life estate to create a lump sum cash payment (with a joint sale) or create an income stream (using the life estate to fund a charitable remainder trust or charitable gift annuity).
Contact us
To learn more about a life estate, please contact us. We would be happy to assist you and answer your questions.
