Renaissance

Using a charitable lead annuity trust, donors can transfer significant assets to charities and heirs, and in doing so, can "zero out" gift and estate taxes.

Naming a DAF as the remainder beneficiary of a CRT gives the donor flexibility.

This case study illustrates the use of a CRT to defer gain on the sale of a closely held business, with the CRT remainder passing to a DAF.

By contributing a partial interest in appreciated rental real estate to a charitable remainder trust and then selling the balance of the property outside of the CRT, the donors increase their income stream for retirement and generate an income tax deduction to offset capital gains taxes on the sale. When trying to use a CRT to shelter gain, remember that it is not an "all or nothing" choice!

By contributing appreciated real estate to a Charitable Remainder Unitrust, a Donor can reduce her capital gain tax liability, avoid estate taxes, receive an income tax deduction, receive a lifetime cash flow, and create a lasting legacy for a charity in her hometown.

A gift to a CRT creates greater long-term cash flow than an outright sale.

This case study illustrates how a private non-operating foundation can make a distribution to a donor advised fund to meet the minimum distribution requirement, while deferring a decision on the ultimate charitable distributees.

Contributing stock to a CRT, which pours into a Special Needs Trust, enables the donors to care for their child, avoid capital gains tax, and give to charity.

A Donor contributes appreciated stock to a SCRUT to increase his future cash flow, further defer capital gain taxes, create an income tax deduction, and remove the stock from his taxable estate, but he is concerned about the impact the 3.8% net investment income tax ("NIIT") will have on him and the SCRUT.

A DAF allows a donor to have flexibility in her charitable giving.

Selling some stock, while contributing other stock to two different types of CRTs, meets the taxpayers' philanthropic and financial goals.

Donors use a DAF to avoid capital gain on the sale of an asset, reduce income tax, and endow their charitable giving.

An entrepreneur uses a CRT and ESOP to transfer his business to employees, give to charity, and retain a lifetime income stream.

By transferring highly appreciated stock to a QDOT-CRT, a taxpayer is able to provide for his non-U.S. citizen spouse, avoid gift taxes, minimize capital gain and income taxes, diversify his portfolio, and give to charity.

Contributing stock to a SCRUT prior to a merger saves donors immediate capital gain taxes.

Contributing closely held stock to a CRT gives the donor an immediate income tax deduction, allows the donor to complete the sale of the gift assets, and eliminates the need for the charity to deal with and negotiate the stock sale.

In this case study, donors fund a charitable remainder unitrust with a portion of the remainder they receive from a testamentary charitable lead annuity trust.

Intra-family transfer of closely held stock through donor advised fund avoids recognition of gain.

A taxpayer uses a CRT to provide an income stream to a spouse as part of a divorce settlement, avoids capital gains tax, receives an income tax deduction, and controls the disposition of assets to the charity of his choice.

Naming a CRT as an IRA beneficiary can provide an income stream for heirs, and may be one of the few ways to "stretch" the payout from an IRA over a beneficiary's life expectancy.

Donors transfer mutual funds to a CRT, making significant gifts to charity now and later.

A CRT defers taxes upon the sale of farm equipment and provides cash flow to donors.

Naming a CRT as an IRA beneficiary can provide an income stream for heirs, reduce estate and income taxes, and make a gift to charity.

A donor gradually contributes appreciated stock to a SCRUT to defer capital gains tax, receive an income tax deduction, remove the stock from her estate, increase her future cash flow, and most importantly make a charitable gift.

Naming a CRT as an IRA beneficiary can benefit a third person and prevent an improvident use of IRA proceeds.