Reserved Life Estates

The Reserved Life Estate is a fairly simple process.  Through a Warranty Deed, you gift your personal residence or other qualified property with the stipulation that you, the grantor, retain the right to live in the property during your lifetime.  All expenses related to the property, including taxes, insurance and upkeep are the responsibility of the grantor during his or her lifetime.

At the time of the transfer of ownership, the grantor receives an income tax charitable deduction for the amount of the remainder interest.  The remainder interest is the amount remaining after deducting the value of the grantor's right to remain in the property for the rest of their life expectancy. 

For example, for someone aged 85, a home valued at $150,000 could generate a charitable deduction of approximately $100,000.  This deduction can be taken at a maximum of 30% of adjusted gross income for the year the gift is made with a five-year carryover.  Qualified property can also be considered for a Charitable Gift Annuity or Charitable Remainder Trust.

Your gift to Catholic Extension is tax deductible to the extent allowed by law. Catholic Extension is a nonprofit 501(c)(3) organization.

Please see your advisor for details, and then contact Catherine Marquis, Director of Planned Giving by email: cmarquis@catholicextension.org, or call 1-800-842-7804.