Life estate agreements

Life estate agreements

Forum topic posted in Forum on 25 October 2010| comments
audience: | last updated: 25 October 2010
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Joined: 03/16/2000
Points: 83
A development officer at a local charity has expressed an interest in promoting life estate agreements, particularly with primary residences, for donors who are charitable but just don't have cash or securities to contribute. She is aware of all the pro's and con's. If you have any practical experience you would be willing to share, it would be interesting to hear how these turn out in the real world.

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Joined: 08/11/2004
Points: 17
Life Estates
The Lutheran Community Foundation has been promoting and receiving gifts of real estate with LER for many years. We recommend a few things. First, include language in the agreement that the donor will continue to insure and maintain the property. Get your own title insurance. Also, be sure to let donors know that if they want to leave their homes before they die, they can. They can donate the remainder of their life estate interest to your charity for an additional deduction. You can jointly sell the property and they would receive a pro-rated amount of the sales proceeds relating to the value of their remaining life interest. You will want to make sure there are no environmental contaminents on the property. Don't accept just anything. It can put your charity at financial risk of cleaning up the property. This seems like a no-brainer, but make sure the deed gets recorded at the time of gift. Sometimes this gets overlooked because the donor thinks the charity will do it and the charity thinks vice versa. If you have any more questions, please feel free to get in touch with me. Dana Holt Peterson, JD | Lutheran Community Foundation | | 612-844-4110.
Joined: 04/06/2004
Points: 45
Life Estate
Due diligence includes a property/title search. Second, is marketability of property. Third, condition. Does donor have enough income to pay property and maintenance cost is really the first question that must be asked.
Joined: 09/02/2002
Points: 15
Life Estate agreement
I have done this several times, and the problem is negotiating the expenses of maintaining the house and related issues during the time of the donor living in the house, or if they become institutionalized. Let me know if you want a sample document. Hyman Darling Springfield, MA
Joined: 05/23/2009
Points: 15
Life Estate Agreement
Hyman -- Would you be kind enough to share your sample Retained Life Estate agreement as you offered some time ago, naturally with the understanding that I will use it only for discussion purposes, it is not applicable to a particular situation, an agreement can only be drafted by a qualified independent counsel, etc.? Many thanks! Lori Goldstein Senior Director of Gift Planning University of Colorado Foundation 1380 Lawrence Street, Suite 1325 Denver, CO 80204 303-315-2027 or 303-541-1337
Joined: 09/06/2004
Points: 30
Life Estate agreement
Would you please send me a copy of your agreement. Thanks, Maurice
Joined: 03/30/2010
Points: 15
life estate agreement
I am working on a life estate agreement that will allow husband and wife to to remain in wife's house. The wife is 90+ and physically ill. The husband is a few years younger but has very early stages of Alzheimer's (and doesn't realize he has that disease). Very sad; they are great people. Anyway, my question Is there a way to make sure that if the husband survives, becomes incapacitated but doesn't have a court-appointed conservator, there can be early termination of the life estate?
Janet Doolin's picture
Joined: 02/16/2000
Points: 5
Message from Janet Doolin, Denver
Greetings Hyman Darling: I would appreciate you sharing a sample life estate agreement with me to share with my University of Colorado-Denver students. I am teaching a new graduate level course on planned giving and endowments. I designed the course this year and begin teaching it, for the first time, in mid -Jan. '11. Nice to see a familiar name on the PGDC site! Janet Doolin, J.D. Doolin Consulting LLC Denver- Greenwood Village, CO USA
Joined: 03/19/2002
Points: 15
your college course on planned giving
Janet, I saw your post about life estates to another member of the PGDC, and I wanted to ask you about the accredidation process for your class. I am talking to the administrators at Dallas Baptist University about their interest in a course about planned giving from a Biblical perspective. Could you tell me about how you or your associates at University of Colorado - Denver got started with the accreditation process? I would really appreciate any insight you have on this. Thank you, Greg Hutto
Joined: 03/16/2000
Points: 83
Robert E. Kass Barris, Sott,
Robert E. Kass Barris, Sott, Denn & Driker, PLLC Detroit, MI
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