Advertising executive and longtime Birmingham resident Bob Luckie Jr. was looking for a way to do something for charity as part of his estate plan. At the time, his will specified that his house would pass to the family’s private foundation at his death.
Advisors Lloyd Wilson, Greg Hyde and L.B. Feld worked with Luckie on a plan to deed a remainder interest in the house over to charity during his lifetime, while still retaining a life estate in the property. By changing and recording the deed to convey a remainder interest in his house to Community Foundation during his lifetime, Bob Luckie got a significant income tax charitable deduction when the gift was complete.
Because he retained a life estate interest in the property, he continued to live in the house and, according to the agreement with the Community Foundation, to pay taxes, insurance and other expenses related to the house. Using the Community Foundation made this technique possible, Hyde explained, because this kind of setup usually makes sense only when the gift is made to a public charity, which the Community Foundation is. Such a lifetime gift cannot usually be made to a private foundation and qualify for a significant income tax charitable deduction.
“In this case, the gift was made to establish an Advised Fund at the Community Foundation, which would be funded with proceeds from the sale of the house at his death,” Hyde said. “Bob Luckie’s children now have the same opportunities to recommend future grants to other charities which they would have had with a private foundation.”
“Dad’s advisors helped him create an effective plan for his estate,” said son Robert E. Luckie III, known as Bobby. “Looking back, I think he was very happy about what he was able to accomplish, especially the gift that involved our family home.
“Dad always cared about the community, and this is just one more way that he showed it. Through this Advised Fund, we will be able to give back to the community for generations to come and continue to be part of the important work of the Community Foundation.”