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Tuesday
Oct262010

Gifts of Real Estate

It is the Attorney-CPA Foundation's general policy to review all proposed gifts of real property; however as general rule the Attorney-CPA Foundation will not accept gifts of real property valued less than Twenty Five Thousand Dollars ($25,000), cemetery lots, or property which is mortgaged, has liens or is encumbered in any way. Although the Attorney-CPA Foundation appreciates the generosity of all gifts, the Attorney-CPA Foundation must take into consideration administrative costs associated with gifts of real estate including but not limited to pollution remediation, taxes and selling expenses.

Procedures for Accepting Gifts of Real Estate

The following procedure should be adhered to in accepting a gift of real property:

  1. Complete the Real Estate Donation Checklist below:
    • Explain that the Attorney-CPA Foundation accepts only marketable real estate and that the property will be sold as soon as possible so that the proceeds can be applied to the Attorney-CPA Foundation's mission and purpose.
    • Explain that the real property must be free of mortgages, liens, past due taxes, or assessments and other encumbrances at the time of the gift.
    • Explain that if the Donor intends to claim an income tax charitable deduction, they will need an appraisal made within 60 days of the gift. They may be required to file an IRS Form 8283 with their individual tax return in the year of the gift. (The Donor is responsible for the appraisal cost.)
    • Explain that a title certificate or attorney title opinion letter will be needed before the property can be accepted. (The Donor is responsible for the cost.)
    • Explain that a hazardous waste inspection and certification may be required before the Attorney-CPA Foundation will accept the property. (The Donor is also responsible for this cost.)
  2. Complete the Prospective Gift of Real Property Checklist for Considering Acceptance.
    • Obtain a Copy of a Recent Appraisal Substantiating the Value
    • Obtain a Copy of Grant Deed to Donor
    • Obtain a Copy of Tax Assessment and Status on Property Tax
    • Obtain a Title Certificate Policy
    • Review by Legal Counsel
  3. Procedure after Acceptance When a proposed gift of real estate is accepted, the following steps should be taken:
    • A deed and owner's affidavit is prepared, transferring ownership from the Donor to the Attorney-CPA Foundation.
    • Upon receipt of the executed deed from the donor:
      • the deed and the recording fee is sent to the appropriate county recorder's office; and
      • An insurance policy is obtained
  4. Procedure for Selling the Property
    • Obtain an appraisal or other evidence of value to facilitate setting a sales price
    • Obtain a preliminary title report
    • Review by legal counsel

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