Assisting Charity-Minded Individuals With Estate and Asset Management
As a person with highly appreciated assets, you will most likely want to defer capital gains taxes should you ever choose to liquidate your assets. Transferring the proceeds from the sale into a term or lifetime charitable trust can allow you to limit your taxable income, continue to amass assets and benefit the charity of your choice.
At the Gemma Law Office, we can help you to analyze your assets and determine if donating to a charitable organization through a trust will offer tax benefits to your estate. Contact us by e-mail or call 781-767-7363 or toll free at 877-549-3746 to schedule a free initial consultation.
Norfolk County Attorney – Remainder Trusts and Charitable Annuities
A charitable remainder trust (CRT) allows you to convert a highly appreciated asset into a lasting income stream. It starts when you transfer an asset into an irrevocable charitable remainder trust. After a charitable trust is established, you will receive an immediate charitable income tax deduction on your current income taxes. As the asset has been removed from your estate, it will not be subject to taxes at the time of your death.
The appointed trustee of the charitable remainder trust can sell the asset at full market value without paying capital gains tax and reinvest the proceeds into income-producing assets. Therefore, for the rest of your life, or for the term of the charitable trust, the trust will provide income. When you pass away, any remaining trust assets will go the charity you have specified.
Charitable Trusts in Conjunction With Irrevocable Life Insurance Trusts
Individuals who choose to establish a charitable remainder trusts use the income from their trust to establish an irrevocable life insurance trust. A life insurance trust can be used to purchase and maintain a policy. Since the policy is owned by the trust, it is exempt from estate taxes, leaving a higher level of funds available to your heirs.
When charitable trusts and life insurance trusts work together, they can maintain family wealth and provide for charitable giving at the same time.
An experienced Norfolk County trusts and estates lawyer with an understanding of remainder trusts and charitable annuities can help you continue to earn income, provide for your loved ones and provide a monetary gift to charities of your choosing. Call our Braintree law office or contact us online to arrange a free consultation.