Stonehill College

Life Estate Agreement for a Term Certain

Full Name
Transfer Value
$
Depreciable Value
$
Salvage Value
$
Useful Life
Term Years

A life estate agreement is an arrangement whereby you transfer title to a personal residence, farm, or yacht to charity while retaining the right to occupy and otherwise enjoy the full use of the property for your choice of a term of years or the lifetime of one or more individuals.

Input Descriptions

Full Name. Please enter the full name of the donor as you would like it to appear on the report.

Transfer Value. Enter the fair market value of your residence, farm or yacht you would like to exchange for a life estate agreement. This can be as little as $1,000 or as much as $100,000,000.

Depreciable Value. Enter the portion of the residence that is depreciable, such as the building. The value of the land should not be included in this amount. The Depreciable Value cannot exceed the Transfer Value.

Salvage Value. Enter the value of the Depreciable Value at the end of the Useful Life of the residence. As an example, it may only be worth 10% of the Depreciable Value at the end of its useful life.

Useful Life. Enter the useful life of the Depreciable Value (the residential structure). The longer the Useful Life the greater the deduction. A good rule of thumb is 40 years.

Term Years. Enter the number of years you would like the term of your use of the residence to exist. The shorter the term, the larger the deduction.



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