I’m considering use of a Charitable Remainder Trust to deal with highly appreciated stocks (like Nvidia). To sell gives 24% to income tax; estate tax would get 40%. Letting heirs inherit could be best; stepped up basis means they inherit tax free. But that might be 20 years in the future. Gifting shares to heirs in $18K chunks might take forever.
Charitable Remainder Trust with benefits paid to heirs seems a reasonable solution. Setting up a trust can be costly and result in annual maintenance fees. They say using a Charitable Remainder Trust offered by a charity can be easy and cost effective. In return for the donation, they take care of the paperwork.
Anyone have experience with Charitable Remainder Trusts? Am I missing anything. Info available on line is limited. Any good sources of info out there?
So far the charities I usually deal with do not offer Charitable Remainder Trusts. Universities seem to have them.
Has anyone shopped for a Charitable Remainder Trust? Are they all the same? Or are there differences to look for?
You can create so to speak your own Charitable Remainder Trust account. We (well actually our financial advisor) has done that at Fidelity. You may want an attorney to draw up your Trust Documents. They can say pretty much anything you want.
We are only gifting to 501-C3 organizations Local Habitat for Humnaity, local Hospice, North Georgia Community Fund, etc. So we have not been concerned with restrictions on who can ultimately receive funds.
I have had a lot of experience with CRT’s (years counseling guys dying of AIDS as well as three generations of my own family’s needs) , and mostly CRT’s have been very good.
It is not hard to do, nor needs to be expensive to do a CRT.
Many states, localities, and causes have institutions that run CRT’s for the benefit of their residents or needs. Here is one I have used successfully: