AGREEMENT FOR CHARITABLE GIFT OF REMAINDER INTEREST IN PERSONAL RESIDENCE OR FARM

Transcription

1 AGREEMENT FOR CHARITABLE GIFT OF REMAINDER INTEREST IN PERSONAL RESIDENCE OR FARM FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION. Specimen documents are made available for educational purposes only. This specimen form may be given to a client s attorney for consideration as a sample document, when requested. This specimen form shall not be given to a client. This document should not be used as drafted. It has not been adapted to the specific circumstances or objectives of any individual client, nor has it been prepared to meet the legal requirements of any particular state. Clients should be advised to seek legal counsel when entering into any transaction and in the preparation of all legal documents. All formalities required under applicable local law should be observed. ***** AGREEMENT FOR CHARITABLE GIFT OF REMAINDER INTEREST IN PERSONAL RESIDENCE (OR FARM) This agreement is made this (day) of (month), (year), by and between (name of donor), of (locality), County of (name), State of (name), hereinafter referred to as "Donor," and (name of charity) of (locality), County of (name), State of (name), hereinafter referred to as "Donee." WHEREAS, Donor has, at the time of the making of this agreement, executed a deed from Donor to Donee, conveying the real property more completely described in the deed attached to and made a part of this agreement as Exhibit A; and WHEREAS, Donor has retained a life estate in said real property, and the parties enter into this agreement for the purpose of setting forth the rights and responsibilities of each with respect to the said real property; and WHEREAS, Donor intends to make an outright gift of the remainder interest in said real property to Donee, and to obtain a charitable contribution deduction for so doing; NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties, it is hereby agreed by and between the parties as follows: ARTICLE I Sample Document - Page 1 of 7

2 Donor retains the exclusive right to occupy the said real property and to receive any income from such property during (his or her) life [or until the death of the survivor of Donor and Donor's spouse]. ARTICLE II During such time as the Donor shall occupy the said real property, (he or she) shall pay all of the real estate taxes, insurance premiums, and expenses of maintenance. Donor will make such repairs and replacements as would be made by a reasonable and prudent fee simple owner using the premises as (his or her) principal residence. To the extent that such work is deemed a capital improvement, Donor shall be deemed to have made by this agreement an enforceable pledge to contribute the cost of such capital improvement to Donee. Capital improvements, additions and replacements, if any, and the plans and specifications for these items, shall be agreed upon in writing by the parties in advance. ARTICLE III Donor shall insure the buildings and improvements on the deeded real property against damage by fire or other hazard in such form and amount from time to time as would be carried by a reasonable and prudent fee simple owner using the property as (his or her) principal residence, except that such policy of insurance shall include an extended coverage endorsement and an endorsement waiving the insurer's subrogation rights as against Donee. Donor shall further obtain a policy of public liability insurance with Donee as an additional named insured and containing limits of liability not less than (amount in words) dollars ($ ) for property damage, and containing limits of liability of not less than (amount in words) dollars ($ ) for injury to persons and (amount in words) dollars ($ ) aggregate limitation. ARTICLE IV In the event of loss or damage to the property by fire or other cause, Donor, except as provided below, shall promptly repair or rebuild the buildings and improvements on the deeded real property at least to the extent of the proceeds received from the insurance coverage. In the event, however, that the loss or damage is so substantial that the parties shall determine it to be economically infeasible to repair or rebuild the buildings and/or improvements on the deeded real property, the entire proceeds received from the Donor's insurance coverage shall be paid to Donee, and the Donor hereby assigns all proceeds from such loss or damage to Donee. ARTICLE V Sample Document - Page 2 of 7

3 Donee agrees that the value of the premises and any proceeds of the disposition of such premises shall be carried on the books of Donee as an addition to its (name of fund) and applied to the purposes of that fund. ARTICLE VI Donor and Donee, at the request of each other from time to time, shall execute and deliver such other assignments, transfers, conveyances and other instruments and documents, and do and perform in good faith such other acts as may be necessary or desirable for effecting complete consummation of this agreement and the transactions contemplated in it, or for maintaining, perfecting, recording, and registering the right, title, and interest of Donee in and to the real property. ARTICLE VII All waivers under this agreement and all notices, consents, demands, requests, approvals and other communications which are required or may be given pursuant to the terms of this agreement shall be in writing and shall be deemed to have been duly given if mailed, certified, first class mail, postage prepaid as follows: A. If to Donor: (give complete street address) B. If to Donee: (give complete street address) or to such other person or persons at such address or addresses as may be designated by written notice to the other party to this agreement. ARTICLE VIII Donor and Donee shall pay their respective expenses in connection with preparation of this agreement and the consummation of the transactions contemplated by this agreement, including, without limitation, fees of their respective counsels, appraisers and other experts. ARTICLE IX The parties to this agreement acknowledge that they have been fully advised as to the legal effects of this agreement, and also informed as to the character of the property interests transferred and conveyed by this agreement, and as to the character and consequences of the responsibilities assumed under the terms of this agreement. Sample Document - Page 3 of 7

4 ARTICLE X This agreement, and all matters pertaining to it, shall be governed by the laws of the State of (name). ARTICLE XI Whenever necessary or appropriate in the interpretation of this agreement, the masculine, feminine and neuter genders shall be interchangeable, and shall be deemed to be synonymous with each other, and the singular shall include the plural and vice versa. ARTICLE XII This agreement may be amended but only by a writing signed by Donor and Donee. ARTICLE XIII This agreement and the documents specifically referred to in this agreement embody the entire agreement and understanding of the parties relating to the subject matter of this agreement, and supersede any prior or contemporaneous agreements, express or implied, written or unwritten. ARTICLE XIV Except as otherwise expressly provided in this agreement, this agreement shall be binding upon and shall inure to the benefit of the parties to this agreement and their respective successors and assigns. ARTICLE XV For the convenience of the parties, this agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same document. ARTICLE XVI Sample Document - Page 4 of 7

5 Donee acknowledges receipt of the deed to the real property described in Exhibit A. IN WITNESS WHEREOF, the parties have executed this agreement, Donee by its duly authorized officer, on the day, month, and year first above written. DONOR (typed name of Donor) DONEE By: (typed name and title of officer) STATE OF (name) COUNTY OF (name) The undersigned, a Notary Public in and for (name of) County, (name of state), certifies and witnesses that the above personally known to me to be the same person whose name is subscribed to this instrument, appeared before me in person and acknowledged the signature and delivered the instrument as a free and voluntary act, for the uses and purposes named in the instrument. My Commission Expires: Sample Document - Page 5 of 7

6 Notary Public ***** Sample Document - Page 6 of 7

7 This information is provided by American General Life Insurance Company (AGL) and The United States Life Insurance Company in the City of New York (US Life), members of American International Group, Inc. (AIG). All companies mentioned, their employees, financial professionals, and other representatives, are not authorized to give legal, tax, or accounting, advice, including the drafting or execution of any legal document. Applicable laws and regulations are complex and subject to change. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. AGL and US Life shall not be liable for any loss or damage caused by the use of, or reliance on, the tax, accounting, legal, investment or financial items contained in this material. FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION All rights reserved. Sample Document - Page 7 of 7