How it works
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You transfer your residence, farm, or vacation home to Wentworth Institute of Technology subject to a Life Estate. |
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You continue to live in the property for life (or a specified number of years). You continue to be responsible for all maintenance and taxes. |
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The property passes to Wentworth when your Life Estate ends; Wentworth then sells the property. |
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Proceeds from the sale of the property go to Wentworth. |
What is a Life Estate Gift?
A Life Estate Gift enables you to give a personal residence to Wentworth and to retain lifetime use of it for yourself, for your spouse, friend, or loved one.
Life Estate Gifts have several tax advantages. If you have already left property to Wentworth in your will, you may want to consider a Life Estate Gift option, so you can benefit from a current income tax deduction, yet still continue to live in your home.
Benefits
- You will continue to be able to live in the residence.
- You will receive an immediate income tax savings.
- You will realize an eventual estate tax savings.
- At any time, if your circumstances change (for example, you decide to move into a retirement home), you may end your Life Estate. You will immediately receive an additional income tax deduction.
- Your gift will benefit you now, and will benefit Wentworth later.
- You will become a member of Wentworth's Giving Society.
An illustration
Bob, Class of '46, owns a beautiful home in Beverly, Massachusetts which he bought for $400,000 and is now worth $700,000. Bob wants to make a substantial gift to Wentworth, but he wants to continue living in his home, which has a stunning view.
Bob gives Wentworth his home, but retains a Life Estate for himself, so he will continue to live in the house until his death. This way, Bob gains a large and immediate income tax deduction (over $360,000) and removes the house from his estate, thus reducing future estate and inheritance taxes for his heirs.
Bob also has the satisfaction of knowing that he has made a significant gift to Wentworth, which will help fund a scholarship that Bob has set up in his wife’s memory. |
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Please note that information and calculations are for illustration purposes only and should not be considered legal, accounting, or other professional advice. Your actual benefits may vary depending on the timing of the gift. |
