A retained life estate

Carol Douglas's vision of a better world included impact that would live long after her battle with multiple myeloma ended. A financial advisor at Merrill Lynch, she was a pioneer among women in the financial services industry, the first Charlotte woman to build a career as a financial advisor and earn her CFP® (certified financial planner) certificate. As she educated her clients on their many opportunities in philanthropy, she made plans for her own estate, including her home amid the tree-lined streets of Myers Park.

Through a planned gift, Douglas donated her Radcliffe Avenue residence to The UNC Charlotte Foundation, creating The Carol A. Douglas Endowed Scholarships for Reentry Students Completing Undergraduate Degrees. Although a traditional undergraduate student herself, Douglas had long been committed to assisting students whose college education had been interrupted due to financial difficulties, family needs, or other obstacles. In an article published in Senior Directions in 2001, she wrote, "After your lifetime, when you no longer need the money, this may be the greatest opportunity to be a philanthropist: that is when the larger block of assets changes hands. Of course, many people want their children or other family members to inherit most of their assets. But trimming off a percentage to go to your favorite charities or educational institutions should be considered…resulting in only slightly less to each heir, but a significant gift to charity." Carol Douglas — her life well lived continues through the UNC Charlotte students who will benefit from her generosity in perpetuity.

How It Works

With a retained life estate, you deed a personal residence or farm to UNC Charlotte now. You retain the right to occupy the home for life and continue to pay real estate taxes, maintenance fees and insurance on the property. You can later decide to rent your home or make improvements to it. After your lifetime — and the lifetime of your spouse or any person you choose to retain rights to live in the home — UNC Charlotte will take possession of the property.

Benefits

• You enjoy your home for your lifetime and/or the lifetime of your spouse knowing it will benefit others in perpetuity.
• You qualify for an income tax deduction in the year the gift is made. The amount of your tax deduction is based, in part, on your age and the value of the property.
• You can immediately deduct the amount of your gift up to 30 percent of your adjusted gross income and carry over any unused deduction for up to five additional years.
• The gift is not subject to capital gains tax.
• The gift eliminates federal estate tax as long as the life estate was created for you and/or your spouse.
• If at any point you no longer wish to occupy the property, you can rent it to provide you with an additional source of income. Or, you can give UNC Charlotte the right to use the property for the rest of your life, providing you with yet another tax deduction.
• This information is not intended as tax, legal or financial advice. Gift results may vary. Consult your personal financial advisor for information specific to your situation.

Find Out More

Planned gifts are as uniquely individual as the people who make them. If you would like to find out if a retained life estate or another planned gift opportunity with UNC Charlotte (or any of the UNC system institutions) is right for you, please contact:

Amy Shehee, JD
Senior Director, Principal and Planned Gifts
UNC Charlotte
704-687-0301
[email protected]
OR
Kinna N. Clark, Esq.
Senior Director of Development & Gift Planning Services
The University of North Carolina System
223 S. West Street, Suite 1800
Raleigh, NC 27603
919-843-4703
[email protected]