The Gift Annuity for Home Program can relieve the worry and stress of financial obligations related to your home. The program can provide options that include helping you achieve substantial benefits like an immediate tax deduction. (Of course, you should consult your tax professional.) But the advantage that most people enjoy is transforming your home equity into debt relief and/or guaranteed monthly income for life.
The income paid to you is typically generated by an annuity backed by major insurance carriers. This program works with insurers that are highly-rated by leading, independent agencies such as A.M. Best, Moody’s, Fitch and Standard & Poor’s. US states also have guaranty associations that cover an insurer’s annuity obligation to a state-determined coverage level limit. Levels vary, but most states cover at least $250,000 in present value of annuity benefits. Check with the National Organization of Life and Health Insurance Guaranty Association, which lists the limit for each state.
Every situation is unique and dependent on a variety of variables. These include but are not limited to: your age, your marital status, the age of your spouse, the assessed value of your property, and the balance of any mortgages or debts. If you are interested in how much income the Gift Annuity for Home Program can specifically provide to you, start with a consultation. A detailed NO OBLIGATION proposal will be generated for your specific situation.
Yes. The Gift Annuity for Home Program provides a “second to die” benefit. You and your spouse will both receive income for the remainder of your lives.
Yes. We encourage that all of your trusted advisors and family participate to the full extent that you desire.
Real properties with low or zero debt-to-equity ratios are candidates for the program. Real properties can include your primary residence, rental properties, vacation homes, raw land and mobile homes.
There is an appraisal completed by a Licensed Appraiser ordered by you and a second appraisal ordered by the participating charity. The final value of your home will be the average calculated by the two appraisals.
Yes, there are three obligations on your part:
1) Pay the property taxes
2) Keep up with normal maintenance and repairs on the property
3) Carry and maintain appropriate property insurance
If you qualify for an annuity income stream, that will continue as agreed. Additionally, should you elect to rent or lease the property, you will receive the associated rental income. In certain instances you can decide to sell your home. Should that occur, the net proceeds of the sale will be invested by the charity and you will receive the lifelong income that is generated.
The Gift Annuity for Home Program is a form of a retained life estate. This is governed by Internal Revenue Code Section 2036. Our funding partners have been entering into these arrangements with donors for decades.