Sale and Unitrust
Are your appreciated assets (stock, bonds, or real estate), providing little or no income? Selling your appreciated assets will result in extensive capital gains tax. A sale and charitable remainder unitrust may provide you with a solution to avoid such high capital gains tax.
Benefits of a Sale and Unitrust
- Receive immediate cash from the sale. You can use this cash to purchase other real estate, invest in your retirement, travel, meet your daily living expenses, or to meet some other financial goal.
- Receive income from the unitrust for the rest of your life as well as future retirement
- Obtain an income tax deduction that may reduce your overall tax bill that year
- Further the Kingdom work of your church or other ministries
How a Sale and Unitrust Works
- You establish a charitable remainder unitrust and transfer a portion of your assets to the trust.
- The assets will be sold. Once sold, you receive cash from the sale. The balance of the sale's proceeds are paid to the charitable unitrust.
- The trust will provide you with income for the rest of your life.
- You receive a charitable tax deduction from the gift to offset your overall tax remittance for that year.
Additional Information on Sale and Unitrust
When transferring a portion of your primary residence to fund a unitrust, you may have the option to apply your one-time home exclusion to reduce or eliminate any capital gains tax that would otherwise be due from the sale. Your tax advisor can assist you to determine if you should utilize this strategy.
Contact us
Our goal is to offer you the best, God-honoring solution for your financial legacy. If you have any questions about this or any other giving solution, please feel free to contact us. It would be our privilege to assist you and answer any questions you may have.
