[Archived from February 06, 2009]
Are you thinking of cashing in some of your stocks or bonds? Do you have a vacant lot, a vacation home or some other piece of real estate you may sell soon? Whether securities or real estate, if you’ve owned the asset for more than a year and the value is higher than your cost, you may want to consider placing the property in a charitable trust. (Note: Special rules apply when selling a personal residence.)
The trustee of a charitable trust can sell appreciated assets without incurring tax on the capital gain. Then the entire proceeds, less selling costs, can be invested to provide a flow of income to you as an income beneficiary of the trust. At the end of the trust, normally upon the death of the income recipient(s), whatever is left will be distributed to one or more charities.
If you sell your property yourself, a significant amount of the sale proceeds could be lost to taxes. But with this trust, the full value (less selling costs) is invested to meet the goals of the trust. Think of the extra income this could mean to you during your lifetime.
Because the trust is irrevocable (you can’t undo it) and the remainder eventually goes to charity, you receive an immediate income tax charitable deduction when you establish the trust. And, if you can’t use all of the deduction the first year, the government allows you up to five additional years.
The beautiful thing about a charitable remainder trust is that it allows you to make a deferred gift now to the Foundation and yet retain a lifetime flow of income to help you through your retirement years.
There are other benefits as well. To learn more about the charitable remainder trust, contact Foundation for Planned Giving Director Alan Engel at 451-8840; email aengel@iglou.com or on our web site: www.jewishlouisville.org. She will provide you with clear and helpful information, including a personalized illustration. She is also available to discuss these ideas with your estate-planning advisor(s).
Be assured that Frances will guard your confidences and not pressure you in any way. Indeed, she will encourage you to consult with your own professional advisor(s) before making any decision concerning a planned gift to the Foundation.