REAL ESTATE GIFTS—BEYOND THE BASICS
By J. Martin Carovano and Anne E. Nash
Real estate is hot. Flip through any financial magazine and you will find extensive discussion on real estate investing. Those of us in the gift planning world are well aware of the philanthropic potential of real estate gifts.
For many individuals, real estate is the major asset of their estate, especially now with the steep decline in stock values. For example, the value of households’ real estate holdings in the U.S. grew 43.3 percent from 1998 to 2002. The value of households’ non-cash financial assets in the U.S. decreased 6.5 percent over the same period. Household real estate now accounts for 34.9 percent of household net worth.1
For a charity, real estate is among the toughest assets to work with. For an advisor, dealing with the client who is land-rich and cash-poor can be a special challenge. In today’s economy, real estate provides a perceived safe haven for investors uncertain of the market’s future returns. That may mean that donors are reluctant to part with one of the few assets left in their portfolios retaining value and growth potential, unless a charity is prepared to go beyond the basics. What do we need to offer to our supporters to enable them to use real estate to achieve their philanthropic objectives?.....