Life Estates in Residences and Farms Example

Miss Norbert, has lived in her present home for 30 years and has no plans to move. Her home is appraised for $250,000. In order to realize current income tax savings she gives her home to Saratoga Bridges while retaining the right to live in the home for life. The value of Saratoga Bridges’ remainder interest in the property is $147,884. Since Miss Norbert’s tax bracket is 30% this will provide her with a total tax savings of $44,365 (30% of $147,884). Her income tax will be reduced by this amount over the period that she reports the deduction.

Any gift of real estate to Saratoga Bridges can only be accepted with the approval of the Board of Directors.  To receive a copy of Saratoga Bridges' Gift Acceptance Policy please call Heather Varney at 518-587-0723.