Ever wish you could secure an income for life, avoid taxes and contribute to your favorite charity at the same time?
Well, you can.
Here is how.
Consider Setting Up a Charitable Remainder Trust.
Talk to your estate planning attorney about setting up a charitable trust.
A charitable remainder trust is an estate planning tool that allows you to:
- Convert an appreciated asset into lifetime income.
- Reduce your current income taxes with charitable income tax deduction.
- Pay no capital gains tax when the asset is sold.
- Reduce or eliminate your estate taxes.
- Gain protection from creditors for gifted asset.
- Benefit one or more charities.
- Receive more income over your lifetime than if you had sold the asset yourself.
- Leave more to your children or others by using life insurance trust to replace the gifted asset.
With a charitable remainder trust, you transfer an appreciated asset (like stocks or real estate) into an irrevocable trust which lets you convert the asset into a lifetime income for yourself. This takes the asset out of your estate so that you will not pay estate taxes on it when you die. It also gives you an immediate charitable income tax deduction because, when you die, any trust assets that remain after you have taken your life income, go to a charity of your choice.
A charitable remainder trust offers you and the charity you choose, significant benefits. You can have an income for life, save money on taxes, provide for your children and benefit your favorite charity(ies) all at the same time!
Seek Professional Advice.
To find out if a charitable remainder trust might work for you, speak to your tax attorney, insurance professional, investment advisor and CPA. If you decide to create a charitable remainder trust, be sure to have an experienced trusts and estates attorney prepare your charitable remainder trust documents.
Get Started Today!
We are estate planning attorneys with offices in Sedona, Arizona. We offer free consultations and we are available to service all of Arizona. We can help you with your estate planning needs. Contact us to set up your free appointment.