CHARITABLE REMAINDER TRUST

If you own assets that have appreciated significantly over the years, you may be able to receive more by giving them away than by selling them.

By setting up a Charitable Remainder Trust (CRT) it can transform a future tax liability into a current tax break, receive a steady source of income for the rest of your life and leave the balance of the proceeds to your favorite charity.

Let’s say you invested $100,000.00 years ago in a stock that is now worth $350,000.00. One option is to sell the stock now and use the proceeds to help finance your future retirement. But you will owe capital gains taxes on your profit and you may also owe state income taxes. Instead, you can set up a CRT to benefit one or more charities and transfer the stock to the trust. Because the trust is tax exempt, you can sell the shares that reinvest the entire $350,000.00 in a portfolio that you administer. The transfer creates an immediate tax deduction.

You receive income generated by the Trust for the rest of your life. The assets are no longer in your taxable estate when you pass-away; the designated charity receives the balance.