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Charitable Remainder Annuity Trusts
(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 dividend 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 |
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Annual
income (fixed) |
$5,000 |
Charitable
deduction * |
$40,328 |
Tax
savings @ 33% |
$13,308 |
| Click here to calculate the
benefits a Charitable Remainder Annuity Trust would give you.
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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. |
* This example is based on a factor that changes monthly. Contact our
office for a personal illustration based on the latest rates.
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For more information
E-mail us,
complete the personal illustration form or
call us at (800) 395-1087 so that we can assist you through every step
of the process.
Disclaimer
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