Real Estate

Many people find that real estate constitutes a substantial portion of their net worth. In past decades the cost of residences and other real property has skyrocketed in many parts of the country. The problems and opportunities resulting from this real estate boom may affect how you would consider making a major gift to PRI.

Q. What would be the advantage of giving PRI land or buildings?
A. Besides having the satisfaction of making a very substantial gift to PRI, you would be entitled to an income tax charitable deduction equal to the full fair market value of the property, less any outstanding mortgage. The property would also be removed from your taxable estate. This might be a particularly good option if you own highly appreciated real property.

Q. Is PRI interested in having me leave real estate in my will?
A. Yes. However, we would be most appreciative if you would discuss it with us before including the bequest in your will.

Q. How might I make a gift of property I only use part of the year?
A. You could consider contributing an undivided interest in the property. For example, you might wish to contribute a one-third interest in a vacation home. This would entitle you to an immediate income tax charitable deduction and would reduce your taxable estate. PRI would benefit at some future date when the house is sold. You might even consider leaving the other two-thirds interest to PRI in your will.

Q. Is it possible for me to give Pacific Research Institute my house now and continue to live in it?
A. Yes. There are income and estate tax advantages available to those individuals who wish to make a gift in this manner. You would deed the house to PRI with the understanding that you will continue to live there for as long as you wish. You will still pay the property taxes and maintain the residence. At your death (and spouse's), or whenever you decide you do not wish to live there any longer, PRI will be free to sell the house and use the proceeds for a purpose you designated.

Q. What if I do not want to live in my house, but need the proceeds from its sale to pay the rent on an apartment?
A. You might consider transferring the house to a charitable remainder trust instead of selling it. You would receive income for life (and spouse's) from the trust. You would also be entitled to a large income tax charitable deduction. At your death (and spouse's) the trust would cease and PRI would receive the principal to use as you directed.

In order to evaluate your property as a potential gift, PRI would need to see a copy of your deed and a copy of a recent appraisal.

For more information contact:

John Campbell
Director, Foundations and Major Gifts
415-955-6107
Fax: 415-989-2411
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