Complications in Leaving Farmland or a Personal Residence to Charity

Abstract

<p>For those who want to leave farmland or a personal residence to a charitable organization, with an income tax or federal estate tax deduction<strong>1 </strong>but set it up such that the income goes to the surviving spouse, it’s been possible to use a very simple procedure – a life estate to the surviving spouse and a remainder interest to the charity.<strong>2 </strong>The alternative, if a charitable deduction is desired, as is nearly always the case, is to set up a charitable remainder annuity trust, charitable remainder unitrust or a pooled income fund.<strong>3 </strong>The simplicity of a legal life estate to the surviving spouse with a remainder interest to the charity has been an appealing choice for many and still assures favorable tax treatment.</p>