What type of property qualifies for a life estate gift annuity?
The property must be a personal residence (including second homes or vacation homes). Remainder interests in apartment or office buildings or other commercial properties are not suitable for this arrangement. Such commercial properties can be donated, however, through other income-producing gift arrangements. What are the donor’s and the life estate owner’s obligations? As a donor, you remain liable for any mortgage on the property and must clear the property of any encumbrances prior to making the gift. As a life estate owner, you continue to be responsible for all usual expenses incurred in maintaining the property, including maintenance fees, insurance, property taxes and repairs. Your rights and responsibilities are defined in a Life Tenancy Agreement entered into with the Foundation. What if the life estate owner wants to lease or sell the property? As a life estate owner, you have several options. Subject to approval by the Saint Francis Foundation, you may lease the property and
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