Purdue University

Giving to Purdue

University Development Office

Life Estate Gift

If you are considering your residence or farm as a gift to Purdue, but wish to live there during your lifetime, a gift of the real estate with a retained life interest is one solution.

Receive a current federal income tax charitable deduction when you transfer the property to Purdue Research Foundation while reserving a life estate for you and/or another person. The deduction equals the present value of Purdue’s remainder interest. This gift also permits you to avoid any potential capital gains tax on the built-in appreciation.

Taxation

  • Beneficiary is taxed on any income

Benefits

  • Tax deduction based on value of property
  • Avoidance of capital gains tax
  • Donor retains the use of the property during his/her life