Gifts of Real Estate Via Transfer on Death Deed
If you own real estate, you may wonder what to do with it at the end of your life. Your family may not need it and you may not want to burden them with the responsibility of selling it as part of your estate. You may have considered donating it to your favorite nonprofits but are concerned about adding unwanted complexity to your estate plan.
There is a simple way to use your real estate to create a significant charitable legacy and simplify your estate at the same time. It’s called a Transfer on Death Deed (TODD).
At the Saint Paul & Minnesota Foundation, we are experts at accepting gifts of real estate. We’ve been helping Minnesotans make gifts of real estate for the benefit of their favorite causes for decades.
Here’s How a Donor Advised Fund Works
A donor advised fund (DAF) at the Foundation can accept gifts of real estate via Transfer on Death Deed. You record a TODD during your lifetime and retain the use and ownership of it. After your passing, ownership of the property is immediately transferred to your fund at the Foundation. We liquidate it tax-free, and the cash is then available to be granted to the charities of your choice. It’s that simple.
Financial Benefits of a Gift of Real Estate via Transfer on Death Deed
Financial Benefits of a Gift of Real Estate via Transfer on Death Deed:
- Capital gain is typically avoided upon transfer
- You maintain use and ownership of the property for your lifetime
- You may receive a charitable estate tax deduction at the time of your passing
- A Transfer on Death Deed is completely revocable. You can withdraw it at any time
Get Started Today
- Talk with a Foundation Gift Planner about your charitable goals and easily establish your own DAF to support your favorite causes.
- Our experienced staff will work with you and your advisors to arrange for the gift of real estate via Transfer on Death Deed.
- You maintain use and ownership of the property for your lifetime.
- After your lifetime, the Foundation sells the property tax-free with proceeds available to distribute to your favorite causes.
Avoid adding unwanted complexity to your estate plan and empower yourself to give to your fullest potential. Call 651.224.5463 or email us at philanthropy@spmcf.org.
How Kathy and Scott Donated their Home
Kathy and Scott lived in their beautiful Saint Paul home for decades. When it came time to design their estate plan, they decided to use their house to support a cause they cared about: library programming for children. Kathy and Scott both worked for the Saint Paul Public Library and wanted to leave a legacy for the youth and families they served.
With the help of their attorney, they decided to donate their home to a charitable fund at the Foundation using a Transfer on Death Deed because it was such a simple and flexible technique. They recorded the TODD during their lives and when the second of them passed away, the property was automatically transferred to the Foundation without having to go through probate. It was sold tax-free, and the proceeds now give annual support to programs for children through gifts to The Friends of the Saint Paul Public Library.
Ready to Get Started?
Start a conversation with a Gift Planner today. Call 651.224.5463 or email the team at philanthropy@spmcf.org.