Renaissance

By gifting stock to a charity in exchange for a CGA, taxpayers minimize the burden of paying capital gains tax, receive an immediate income tax charitable deduction, and provide for a lifetime income stream.

Contributing stock to a CRT creates a level cash flow during donor's retirement.

Contributing an appreciated asset to a CGA allows donors to benefit charity, defer capital gain taxes, and increase lifetime cash flow.

Stock acquired through incentive stock options is contributed to a DAF, reducing capital gain taxes and fulfilling charitable intent.

Donors use a charitable gift annuity ("CGA") to triple their retirement cash flow, receive a current income tax charitable deduction, spread out capital gain over several years, and make a gift to a college.

A donor funds a CRAT with appreciated stock to achieve an increased cash flow, defer capital gains taxes, diversify her assets, and obtain an income tax deduction. In addition, she is able to remove the stock from her gross estate for Federal estate tax purposes and make a substantial gift to charity.

By gradually transferring highly appreciated stock to a SCRUT, with the remainder passing to a DAF, a taxpayer is able to increase his lifetime cash flow, defer capital gains tax, receive an income tax deduction, make gifts to charities, and remove the stock from his estate.

This article explores the use of a charitable remainder trust in conjunction with a special needs trust to provide for a client's long term care.