Donate Your Home, Keep Living There
Donate your personal residence (a house, cabin, or farm) to Merrimack College and continue to live there rent-free for the rest of your life or a set term of years. This generous act will support Merrimack College’s mission to provide accessible, high-quality education. In exchange, you will receive an immediate income tax deduction, making this not only a profound contribution to higher education but also a beneficial financial decision.
How it Works
You can make a significant impact on higher education by creating a retained life estate. This allows you to make a substantial gift using your most valuable asset without disrupting your living arrangements or cash flow. Here’s the process:
- You irrevocably transfer your residence, farm, or vacation home to Merrimack College.
- You continue to live in the property rent-free for life or a specified number of years, remaining responsible for all taxes and upkeep.
- Merrimack College assumes ownership of the property when your life estate ends.
- Through this arrangement, you directly contribute to Merrimack College’s mission of providing high-quality, accessible education while also enjoying the benefits of your property throughout your lifetime. Your donation can make a profound difference in the lives of countless students.
How You Benefit
- Receive gift credit and an immediate income tax deduction for the appraised value of the property, based on the fair market value of your house minus the present value of the life tenancy you will retain. This financial advantage is both immediate and potentially significant.
- You have the flexibility to terminate the life estate at any time, which can allow you to take an additional income tax deduction. This gives you control and further financial benefits.
- Enjoy the satisfaction of making a significant gift now that benefits higher education later. Your contribution will support Merrimack College’s mission to provide accessible, quality education, impacting countless lives and shaping future generations. Your legacy will live on in the improved opportunities and success of students at Merrimack College.
Can it Work For You?
A retained life estate may be for you if:
- You are seeking a flexible plan that shields you against uncertainty. For instance, if you are considering relocating but are not yet ready to commit to a new location, or if you think you may stop using the family cabin but aren’t ready to sell, this arrangement could be ideal.
- You wish to make a significant gift to support higher education without affecting your living arrangements or cash flow. Your donation will have a profound impact on Merrimack College and its mission to provide accessible, quality education.
- You are capable of continuing to maintain your home. This arrangement requires that you handle taxes and upkeep for the duration of your lifetime or the specified term.
- Your property is not subject to a mortgage or other obligations. This ensures a smooth transition of the property to Merrimack College when the time comes, allowing your gift to fully support the institution’s educational mission.
More Information
Your exact benefits will depend on several factors, including the value of the property you’re contributing, its condition, your age, and other market factors. Please see the example below to better understand the potential benefits of a retained life estate. If you would like a personalized proposal prepared for your unique situation, don’t hesitate to contact our team of experts.
As with all gifts of real estate, Merrimack College must review and approve the transfer. You will need to secure an independent appraisal of your home to establish its value for the deduction. If there’s a mortgage or lien on your home, it will complicate the transfer to us and could potentially result in taxable income for you. Our gift-planning team can provide advice on all these matters, ensuring the process is as smooth and beneficial as possible for you while maximally supporting Merrimack College’s mission.
