Outright gifts of real estate are simply deeded to PrairieViewA&MUniversity and the donor generates an income tax deduction for the fair market value of the gift.
PrairieViewA&MUniversity, in partnership with the Texas A&M University System evaluates all potential gifts of real estate for marketability and potential environmental concerns. As such, we ask that donors supply detailed information on the property before the university accepts the gift.
Gifts of Real Estate
Many donors make gifts of real estate as a way of generating significant tax benefits. Gifts of real estate can consist of almost any type of property: a personal or recreational residence, a farm or ranch, a commercial building, subdivision lots, timberland or any undeveloped parcel of land. The gift can be the entire property or a fractional interest in the property (50% percent, for example). Capital gains taxes can be avoided and the full market value of the real estate becomes deductible as a charitable contribution.
Retained Life Income Gifts
The gift of real estate is transferred to a Charitable Remainder Unitrust so that it can generate income for the donor and/or a second beneficiary. The lifelong annual income paid to the donor depends upon the value of the trust property and a previously agreed upon rate of return. At the death of the beneficiary, or beneficiaries, the assets of the trust pass to PrairieViewA&MUniversity.
Retained Life Tenancy Gifts
A personal farm or residence can be transferred to PrairieViewA&MUniversity while the donor retains the lifetime right to use of the property as a personal residence. The donor can also receive a charitable income tax deduction for the value of the gift. Upon the death of the tenant, the property passes over to PrairieViewA&MUniversity’s assets.
Fractional Interest in Real Estate
A gift of fractional interest in real estate conveys a portion of the property to PrairieViewA&MUniversity. For example, Tim and Sue own a vacation home that they use only two months of the year. They can give an undivided 50% interest in the property to PrairieViewA&MUniversity, receive a charitable deduction and still be able to use the property for up to six months of the year. Until the property is sold, the institution does not benefit economically, though the University would have the right to use the property for six months of the year. When the property is sold, PrairieViewA&MUniversity shares in the sales proceeds.
Real Estate Bequests
Donors may leave real estate to PrairieViewA&MUniversity by using any of the methods described above and including such planning within the donor's written will.
