Charitable bequests in the form of real estate can provide generous gifts to help support the work of non profit organizations such as Historic Denver.

A recent example was the sale of a beautiful 7th Avenue home which was willed to the Salvation Army by the generous forethought of the late Marilyn Massey. The proceeds of the sale exceeded out expectations and certainly would have pleased my long-time friend, Marilyn. I would like to share this successful experience in the hopes that it might inspire others as they undertake their estate planning.

Donating a property to a charity is an option worth exploring for many, especially for those estates exceed $600,000 in value which are likely to face tax consequences. Also, if one has no surviving relatives, or if the heirs have no interest in the property, charitable bequests of real estate can be a generous alternative to letting the property go to the state.

There are two ways of setting up a charitable trust. One is a Life Estate, in which the donor continues to live in the donated property, maintaining and paying upkeep as long as he or she remains in the home. Upon the death of the donor, the charity immediately takes possession and the home does not go through probate.

Another option is a charitable annuity or Uni-Trust. In this situation, the charity would sell the house and avoid capitol gains (28% federal and 5% state). The income from the trust goes to the donor for the rest of his or her life, and the donor can take a charitable deduction for up to six years. The difference between annuity and the Uni-Trust is interest earned. The annuity is a fixed amount while the other might grow.

A charitable bequest is a lasting gift to the community. In the case of the 7th Avenue home, it was inspiring to see the community's response to the donation. When fellow Realtors learned there was no commission to be paid on this sale, there were no complaints. In fact, most of the sealed bids came from cooperating agents from firms all around the Denver metro area. Neighborhood children volunteered to look after the lawn, lenders called to donate a free loan, printers donated their services, florists sent over arrangements, and Land Title of Cherry Creek donated the policy. I donate my commission and marketed the house in a unique way. The house was offered "for sale" for only two weeks, and with extensive coverage in the local media nearly 400 people attended the "Champagne and Chocolate" open houses. Potential buyers came from as far away as Pueblo.

In spite of much needed renovation, the house drew 11 sealed bids and sold for $242,000, much more than the Salvation Army originally anticipated.

The best part of this unusual sale was the community response and the fact that Marilyn Massey's donation has inspired others to look into making similar bequests of real estate to non-profit organizations such as the Salvation Army or Historic Denver. Please be sure to consult a qualified tax consultant and/or advisor when considering such gifts.

For information about gifts of real estate or other methods of donating to Historic Denver, please contact Kim Grant at Historic Denver, 303.296.9887.