Life Estate Reserved
If you wish to leave your home or farm to Pace Academy upon your death, but would also like to receive a current charitable income tax deduction, a life estate reserved might be the solution.
Your charitable gift of property to Pace can make a very significant impact. Please note that Pace must accept gifts of property case-by-case; proposed donations are reviewed by our Gift Acceptance Committee. The property must be free of liens and not under a pre-existing contract or legal obligation to a known buyer.
Life Estate Reserved
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Life Estate
Life Use
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Benefits of a life estate reserved
- Receive a federal income tax deduction for the value of the remainder interest in your home or farm
- Preserve your lifetime use and control of your home or farm
- Create a life estate based on more than one life. This will preserve the use of the property for you and a loved one, such as a spouse or dependent child
How a life estate works
- Following approval by Pace's Gift Acceptance Committee, you deed your home or farm to Pace Academy. The deed will include a provision that gives you the right to use your home or farm for the rest of your life and that of any other life estate party named in the deed.
- You and Pace Academy sign a maintenance, insurance and taxes (MIT) agreement to explain that you will do your best to keep the property in good condition and that you will maintain property insurance and pay the property taxes.
- When the owners of the life estate have passed away, your home or farm will belong to Pace Academy. We will use the property, if appropriate, or sell it, using the proceeds for the benefit of the school.
Contact us
To learn more about a life estate, please contact us. We are happy to assist you with your questions and provide additional information.