Turn Your Real Estate Into Lifetime Income, Avoid Capital Gains Tax
and Help Cure Cancer

Use this checklist to see if transferring real estate to a charitable trust is a good option for you. Would you like to:

  • Sell your property and avoid capital gains tax on the transfer?
  • Receive a charitable income tax deduction?
  • Receive lifetime income for yourself and/or other beneficiaries?
  • Have the peace of mind of no longer managing your property?
  • Explore an alternative to a 1031 exchange?
  • Convert a non-income producing property such as a parcel of land or second home into a lifetime income stream?
  • Make a difference in the lives of people with cancer, diabetes and other serious illnesses?
If you answered “yes” to any of these questions, transferring your property to a charitable trust may be your answer.

Use the form on this page to request a complimentary example of your benefits. City of Hope’s Planned Giving staff are experts in facilitating the process for you.

Honoring Lifetimes of Work With a Legacy to Help Cure Cancer

The story of Michael Thomas’ gift to City of Hope starts more than 100 years ago, when his great-grandfather purchased 80 acres of farmland. His great-grandparents gave 20 acres to his grandparents to help fund his father’s education.

Today, Thomas grows organic blueberries and walnuts on 120 acres, some of which includes land from the original farm. While the farm has been passed down through four generations, Thomas did not have a son to carry on this tradition. Instead, by gifting some parcels of his farm to fund charitable remainder trusts that benefit City of Hope, Thomas will receive significant tax benefits and create a legacy of hope and healing that honors his family and his own hard work, while creating lifetime income for himself and his family members.

In entrusting his life’s work and legacy to City of Hope, Thomas needed to have confidence in City of Hope’s ability to see his vision through. He found that working with Michael Rorman, one of City of Hope’s experts on planned giving and real estate gifts, gained his confidence. “Sometimes a succession plan doesn’t work out as we would hope. It was a hard decision, but I feel great about it, knowing that my life’s work is going to be reflected in something so important and meaningful and good for the world.”

Example: Charitable Remainder Trust vs. Outright Sale Comparison

table of Example of Charitable Remainder Trust vs. Outright Sale Comparison *Estimated blended Federal/CA Long-Term Capital Gains Tax Rate of 33.93%. Estimated cost basis is $900,000 with an estimated capital gains tax of $983,970.

**The estimated proceeds from the outright sale are net of the estimated $983,970 capital gains tax liability incurred by the outright sale.

***The charitable deduction is based on the appraised value at the time of the transfer into a CRT and may be used to offset tax liability in the year of the gift. Any unused portion can be carried forward for up to five years.

****Estimated first full year’s income, based on a fixed rate of 5% of the CRT’s annual fair market value. The figures contained herein are for illustration purposes only and should not be considered legal, accounting or professional advice. Your actual benefits will vary depending on several factors, such as age, timing of gift and value of your property.

See Your Benefits