Example: Retained Life Estate
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Tom and Sallie Knight, aged 77 and 73, own a vacation home. Having no children and a great fondness for Oberlin, they would like to endow a research fund with a contribution of a remainder interest in their vacation home. The value of the home is $328,000. The charitable deduction in this example, based on the value the Internal Revenue Service attributes to Oberlin’s remainder interest, is approximately $144,699. Assuming a 30 percent income tax rate, the cost of the gift will be reduced by $43,409 (30 percent of $144,699). Mr. and Mrs. Knight will claim the charitable deduction in the year of the gift and will continue to use their vacation home for their lifetimes. Oberlin will establish the research fund upon sale of the property after the death of the survivor of Mr. and Mrs. Knight.

Other Possibilities for Gifts of Real Estate
Real estate may also be appropriate for funding charitable remainder unitrusts or making bequests.

Taking the next step:

To learn more about retained life estates, please contact the Gift Planning staff at gift.planning@oberlin.edu or 440-775-8599. We also encourage you to fill out the request for more information form so we may better assist you.

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