Do you have a house, investment or some other kind of property that has increased significantly in value? Do you want to liquidate this property and reinvest the money to start generating an income from it, but you don’t want to pay the tremendous capital gains taxes? You’re facing a fairly common dilemma — but a charitable remainder trust might allow you to accomplish all of those goals.
Best of all, you can help a worthy cause in the process. Here are some other benefits of a charitable trust:
Feeling good about donating and helping: Great joy comes from leaving a legacy behind for the benefit of a good cause.
Obtaining a tax saving: You can transfer property over to the trust and prevent the need to pay taxes on the property when you sell it.
Preventing estate taxes: The creation of a charitable remainder trust could be a way for your estate to prevent large estate taxes after you die (if your estate is large enough to incur these taxes).
Generating regular income from your charitable remainder trust: Most people who create a charitable remainder trust will accept fixed income payments or payments that represent a percentage of the total value of the trust.
If you think that you and your family could be helped by the above benefits, learn more about charitable remainder trusts and other types of trusts and what’s involved in setting one up as soon as possible. Our law firm is available to talk with you about whether a charitable remainder trust could be right for you.