Gifting a Personal Residence or FarmGifting a Personal Residence or Farm
There was an old woman who lived in a shoe Had she planned on giving that shoe (her personal residence) to a charitable remainder unitrust (CRUT) or charitable remainder annuity trust (CRAT) and didn't vacate before funding the trust no income tax deduction would have been allowable. Her use of the shoe would have been a prohibited act of self-dealing.1 So what should that old woman do? She wants
Conrad Teitell & Heather J. Rhoades
There was an old woman who lived in a shoe
Had she planned on giving that shoe (her personal residence) to a charitable remainder unitrust (CRUT) or charitable remainder annuity trust (CRAT) — and didn't vacate before funding the trust — no income tax deduction would have been allowable. Her use of the shoe would have been a prohibited act of self-dealing.1
So what should that old woman do?
She wants to live in her shoe (or other personal residence) — and get tax benefits now. Read on.
The Basic Rules
A donor can get income and estate tax benefits by making a charitable gift of his personal residence or farm, even though the donor keeps the right to life enjoyment. A life estate may be retained for one or mo...
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