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Memorandum Allocating Responsibility For Payment Of Taxes
(And Maintenance Charges On Donated Farm)
MEMORANDUM made on [date] to document the conveyance of certain farmland by [name], residing at [address] (the Donor) to [name of institution], an educational institution chartered by the State of [State] with principal offices at [address] (the Donee).
1. Delivery of Deed.The Donor this day has delivered to the Donee a bargain and sale deed conveying to the Donee all of the Donor's right, title, and interest in and to certain farmland located at [insert location] more fully described in the said deed (the property). The Donor has reserved for herself the right to enjoy full and exclusive possession of the property including the right to occupy the property and reside therein and to enjoy the rents, issues, and profits of the property undisturbed by the Grantee, its successors, and assigns for so long as the Grantor shall live.
2. Payment of Cost of Transferring Property.The Donor has paid or will pay the costs of the conveyance, including the cost of recording the deed, any conveyance tax, title search, title insurance charges and premiums, and attorney fees.
3. Payment of Taxes and Maintenance During Donor's Life.The Donor will pay all of the expenses involved in the ownership and maintenance of the property for so long as he lives, including, but not limited to, all real estate taxes, assessments, and repairs. The Donor also will maintain fire and liability insurance on the property and the improvements thereon in amounts sufficient to protect the Donee's remainder interest therein.
4. Conveyance a Contribution.The Donee acknowledges that the conveyance to it of the remainder interest in the property constitutes a contribution to it by the Donor.
5. Appraisal.The Donor has had the property appraised by [name of appraiser], a person qualified to appraise farmland, on [date]. [Name of appraiser] has found the property to be worth ---------- dollars ($----------) and the value of the remainder interest therein based on Internal Revenue Service life expectancy tables to be ---------- dollars ($----------). A copy of the appraisal is annexed hereto as Schedule A [omitted]. On or before [date], the Donor will submit a completed Internal Revenue Form 8283 to the Donee containing a summary appraisal of the remainder interest in the property showing its value to be ---------- dollars ($----------) signed by [name of appraiser]. The Donee will promptly sign the submitted Form 8283 and return it to the Donor so that the Donor may attach the Form to the Donor's Federal Income Tax Return for 20--.
IN WITNESS WHEREOF the parties hereto have signed this Memorandum the day and year first above written.
[name of institution]
*** If Required By State Law ***
This Section for Notary:
State of _________
County of ________ [COUNTY]
On [DATE] before me, [NAME OF NOTARY], notary, personally appeared [NAME OF PERSON(S) INVOLVED], personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
Witness my hand and official seal.
My commission expires: _____