What if that vacation home or rental property you're tired of maintaining could be turned into an income stream for you and your family now and a gift for ministry later?
You've shared many joyful occasions and made wonderful memories with family and friends at that place on the beach. The children, and then the grandchildren, built sand castles and romped in the waves. But, time has passed and the vacation home has become more of a burden than a benefit. You began renting the home, but this has become burdensome. Dealing with renters, clean up, damage, and repairs is more than you want to handle. Your children have moved away and they don't feel like they'd receive much benefit from keeping the house.
Maybe you're experiencing a similar situation with a vacation home or rental home. Selling the home is an option. But, there is another option which could provide for you, your family, and the Lord's work. A Charitable Remainder Unitrust (CRUT) is an instrument that provides income for you and can even provide income for family members for a period after your lifetime.
Giving a home or other piece of real estate through a CRUT first involves contacting the Baptist Foundation to determine if the real estate gift would be appropriate for this type of instrument. If the Foundation and you determine that this gift would be a good "fit," you would proceed as follows:
- You would obtain a qualified appraisal on the property and then GIVE the home to the Baptist Foundation.
- Based on the appraisal and the future value of the gift, you would receive a charitable deduction. You would not have to pay capital gains tax on the appraised value of the home since you've given it as a gift.
- The Foundation will sell the home and, once it's sold, will invest the proceeds from the sale in your CRUT. You would receive payments for the rest of your lives (you and your spouse). Calculated payments will be based on a percentage of the fair market value in the fund at the beginning of each year. You may receive your payments monthly, quarterly, semi-annually or annually and payments can be directly deposited to your bank.
Example: A 6% CRUT with a fair market value of $200,000 in year one would pay $12,000 for year one. If the value at the beginning of year two is $202,000, the payment for year two would be $12,120.
- After the lifetimes of you and your spouse, you children will divide the annual payments for a period of up to 20 years!
- At the end of the term determined for your children, the remaining funds will be transferred to an endowment for the benefit of your church or other ministry to provide an annual stream of income until Jesus returns!
The joy received from having a vacation home will provide memories that will last a lifetime. Giving that home through a Charitable Remainder Unitrust can provide additional blessing for your family and for ministry!
Need more information? Contact us at 800-723-7242 (ext 8000) or 803-227-6193.
