Fall 2004

Message from the Dean | Ethicon Endo-Surgery Supports New Mexico Nurses | Endowment Assists RN-to-BSN Students | Mercer to Receive Distinguished Alumni Award | Real Estate - A Great Asset in Charitable Planning | Events and Notes

Most people know that cash and appreciated securities are excellent assets for charitable giving. However, not everyone thinks of real estate in such a way, even though it is widely owned and certainly can have great charitable impact and tax advantages. It is actually one of the most valuable assets people own and can be especially appropriate for charitable giving purposes.

A personal residence, vacation home, farm, and commercial or rental property can all be used to make gifts. Like gifts of long-term appreciated securities, gifts of real estate are attractive because of the double tax benefits-an immediate charitable income tax deduction for the market value of the property plus the avoidance of capital-gains tax.

Gifts of real property require careful and due diligence on the part of both the donor and the College of Nursing. The donor must be willing to relinquish ownership and must be able to show that the property is free of restrictions that could affect its value or marketability. Also, in order to justify income tax deduction, the donor must obtain an appraisal from a qualified real estate professional. To make good use of the property, the College of Nursing must be satisfied that it is readily marketable and in the case of commercial real estate, that no environmental hazards exist.

Once these considerations are satisfied, an outright real estate gift simply involves the legal transfer of the property title to the College of Nursing.

Personal and family considerations often make giving up use of a personal residence unfeasible during one’s life. In these cases, the donor may make the gift by setting up a trust to provide income or through what is known as a retained life estate. Simple stated, a life estate involves transferring the title, subject to the donor retaining the right to occupy the property for life, or for a specified period of years.

Of course as is true with all significant charitable transfers of property, donors should confer with their attorney and other financial advisors before making decisions.

We welcome your inquiries about this and all other charitable giving opportunities. For more information, please contact Rosemary R. Gregory, director of development, at (505) 272-0200 or rrgregory@salud.unm.edu.