Other Arrangements

Outright Transfers of Property

Even though many donors make outright gifts of cash or publicly-traded securities, other assets can also be appropriate to transfer directly to PNB. They include different kinds of real estate (e.g., rental houses, apartment buildings, commercial properties) and various holdings in private businesses, whether structured as closely-held corporations, partnerships, or limited liability companies.

Provided you have owned a capital asset more than one year, when you give it to PNB you will receive an immediate income tax deduction for its fairmarket value (as established by an appraisal), and you will avoid paying tax on any capital gain. Naturally, before a gift is made, PNB will need to determine that the asset meets its gift acceptance guidelines.

Bargain Sales

As an alternative, you may wish to consider selling an asset to PNB at a bargain price, i.e., something less than its full value. The value in excess of the sale price can be claimed as an income tax deduction, and any capital gain will be taxed only in connection with the sale portion of the transaction. Consider this example:

Retained Life Estates in Residences and Farms

A "Retired Life Estate" gift is especially attractive to older donors who would like to remain in their current home for the rest of their lives but would like to have PNB be the eventual owner of the property. An income tax deduction is available as soon as the life estate has been created, and a number of options are available if you determine later that you need to move. Some donors even choose to arrange a life estate with respect to a vacation home or farm. Here is how a life estate might work:

We would be pleased to work with you and your advisors to explore the choices available to you. There is no cost or obligation, and all information will be kept confidential. Please contact Lilah Helton, Associate Director of Development, at 206.441.3894 or lhelton@pnb.org.