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Charitable Remainder Annuity Trust
(Gift example*)
You are holding appreciated stock valued at $100,000 from which you receive a $1,000 dividend annually. You would like to reinvest for more income; however, you will owe a capital gains tax on $90,000 of profit if you do. Instead, you contribute the to a charitable annuity trust paying you and your spouse (ages 70 and 68) $5,000 annually.
What are the benefits?
Amount contributed |
$100,000 |
|
Cost basis |
$10,000 |
Capital gains tax avoided (90,000 x 15%) |
$13,500 |
Annual income (fixed) |
$5,000 |
|
Charitable deduction * |
$40,328 |
|
Tax savings @ 33% |
$13,308 |
|
Note: The Annuity Trust is not the only gift plan that pays you lifetime income. Compare its benefits with those of the unitrust and the gift annuity. |
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For more information
Email us, complete the personal illustration form, or call us at 610-526-1425 so that we can assist you through every step of the process.
