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Retirement Discussions / Retirement-Soon or Done
|Subject: Re: Charitable Remainder Trust||Date: 2/28/2001 12:58 PM|
|Author: telegraph||Number: 128 of 173|
"Does a Ch.R.Trust work only with money and /or stock, or can this be done with Real Estate, too?
Where can I learn about this type of gifting?
I am in my early 60's and would like to move from my too-large house to my rental condo. "
First, selling your house, if the gain over what you paid for it is less than $250,000 and you are single, doesn't cost you a penny in taxes.....$500,000 exemption in gain for a couple.....so selling your house likely wouldn't require you to pay taxes.
In some CRT, you can put property in, but it really complicates things, and you have to sell the house anyway.....
If you sell the house, you can stick that money in, but you are better putting appreciated stock in, since you don't pay any tax on the gains at all!......and you benefit from income from the trust, based upon the amount you put in.
And you could keep the money from the house, invest as you will...live off it.....
Many (most) educational instutions have departments or companies they employ for such things....if you have a favorite college, you might contact them. (or visit their web site, since they are always eager for donations!).
You will need a competent lawyer/financial planner/CPA to set this up.....there are tax benefits (ie, charitable deductions) which you can take against current income.....and the paperwork and transfer of assets must be done in the right sequence and order, with right paperwork. Plan to spend $1000 plus setting this up.
Also, Fidelity and other brokerage companies also offer CRT....and you can decide or change the beneficiary for 'gifts' each year....the down side is they charge something like 1% of assets per year as a management fee......
Lots of info on the web....do a search on Charitable Remainder Trusts - there are two types....
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