Creating A Winning Proposition For Families And CharitiesShare
AGH helped a philanthropic, high net-worth client establish a winning proposition for his family and a charity by establishing a charitable remainder trust. The client donated stock to this charity, but he continues to receive an annual income from it for his lifetime. When he passes away, his beneficiaries will receive this income and the charity will be given the principal after a specified period of time. The bottom-line benefits: He continues to receive income from donated assets while deferring capital gain tax. He receives an income tax deduction for the donation, reducing his current income tax liabilities, and because the assets given to charity are removed from his estate, he also reduces future estate taxes. Not to mention another wonderful result – the charity will receive a substantial donation.
Tagged In: Estates & Trusts