Skip to Content

Planned Giving

Retained Life Estate

A retained life estate is a gift allowed under the federal tax law that allows the donor to donate their home or land to the SD Historical Society Foundation while retaining the right to live in it for the rest of their lives. The creator of the retained life estate provides an irrevocable deed to the SD Historical Society Foundation for the home or land, and then establishes the terms of the right to continue living there, either for life, a set number of years, or a combination.

While you retain the right to live on the property, the donor also continues to be responsible for any maintenance, insurance, taxes, repairs, etc. At any point after the donation, the property can be sold in coordination with the SD Historical Society Foundation. When your retained life ends, the SD Historical Society can then use the property or the proceeds of a sale for the designated purposes.

Example:

The donor irrevocably transfers the home or farm, which has a value of $75,000, to the SD Historical Society Foundation, and the right to live in the home for a lifetime benefit of the donor.

Benefits:

1. The donor receives a federal income tax deduction for a portion of the value of the property.

2. The donor retains the right to live on the property for the rest of their life.

3. The donor removes the property from the estate and reduces future estate taxes.

4. The donor provides a valuable benefit to the SD Historical Society Foundation.

For more information, contact the Foundation. Any example is simply an illustration and a tax professional should be consulted prior to any donation.