Life estates provide a way for your client to gift a residence or farm to The Scranton Area Foundation. Your client is entitled to a charitable income tax deduction for the present value of the remainder interest while escaping potential capital gains tax on the property’s appreciation. The donor deeds the property to The Scranton Area Foundation and retains the right to live in the home or on the farm until the donor’s death. When the life estate terminates, the real estate is sold and the proceeds are used to support the organizations or purposes the client identified.