Gifts of Real Estate - page 2

Provide future funding
You may choose to give a piece of real
estate to Johns Hopkins through your
estate plan, typically through your will
or revocable trust. This gift will avoid
capital gains tax that would have been
due as a result of the sale of the real
estate and entitle your estate to an estate
tax charitable deduction. You can direct
your personal representative or trustee to
sell the property and give the proceeds to
Johns Hopkins, or you can leave the real
estate directly to Johns Hopkins. With
the latter, Johns Hopkins will undertake
the due diligence process referenced
on page one before acceptance.
Fund a gift plan that pays you income
You may use your real estate to fund a
charitable remainder unitrust (CRUT),
which may be structured to provide
lifetime income for you and/or others, or
income for a term of years, not to exceed
20 years. You choose the payout rate in
accordance with the IRS parameters and
Johns Hopkins guidelines, if you would
like Johns Hopkins to serve as trustee.
Because the CRUT is tax-exempt,
the appreciated real estate can be sold by
the trust without immediate recognition
of capital gains, allowing the full sales
proceeds to be reinvested. Also, your gift
generally entitles you to an income tax
deduction for a portion of the fair-
market value of the donated real estate.
At the end of the lifetime of the income
beneficiaries or term of years, the
remaining funds in the CRUT are
distributed to Johns Hopkins to be used
as you designate.
Give your property and continue to enjoy it
Called a retained life estate, you may
donate your property to Johns Hopkins
but reserve the right to use it for the
rest of your life or a specified term of
years; thereafter the property goes to
Johns Hopkins. You are entitled to an
immediate income tax deduction for a
portion of the value of the property.
You can continue to enjoy the property
and also be responsible for insurance,
maintenance, real estate taxes, and
other expenses. When the life estate
terminates, Johns Hopkins immediately
becomes the owner of the property.
Real estate gifts can often be complex
and require extensive due diligence
and information gathering. For instance,
you as the donor are responsible for
obtaining a qualified appraisal for your
gift. We encourage you to reach out
to us early in your planning and to also
consult with your own tax advisors.
To learn more about gifts of real
estate and other creative ways to give
to Johns Hopkins, contact us in the
Office of Gift Planning.
Johns Hopkins
Office of Gift Planning
San Martin Center, 2nd Floor
3400 North Charles Street
Baltimore, Maryland 21218
Is It Right for You?
Consider a gift of real estate
if you:
Want to make a significant
gift to support the mission
of Johns Hopkins University
or Medicine.
Hold readily marketable
residential, commercial,
or undeveloped real
estate that has appreciated
in value.
Are concerned about rising
expenses associated with
the property, including
the capital gains tax cost
of selling the property.
Would like to use your real
property to generate income
during your lifetime.
Johns Hopkins does not give tax, legal,
or financial advice; please consult
your own advisor for individual advice.
The information contained in this
publication is not intended to or written
to be used, and cannot be used, for
the purpose of avoiding penalties
imposed under the Internal Revenue
Code or promoting, marketing, or
recommending to another party any
transaction or matter addressed herein.
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