Penner & Purves
Estate Planning, Family Law, Trust Administration, and Probate in Santa Barbara County

Blog

Posts tagged Charitable Remainder Trust
Selling Real Estate or a Business? Avoid Capital Gains Tax With a Charitable Remainder Trust
Selling Real Estate or a Business? Avoid Capital Gains Tax With a Charitable Remainder Trust

If you have a sale of real estate or assets coming up that will result in you owing capital gains tax, you may want to give us a call to discuss whether to set up a Charitable Remainder Trust (CRT) first. Think of it this way: would you rather pay taxes and send your hard-earned money to the government, or use that same money to provide yourself with a lifetime of income and support your favorite charity at the same time?

CRTs offer a number of benefits to everyone involved. These trusts allow you to contribute to your most beloved charities, while also generating  a valuable extra source of income for the beneficiaries, which can assist with retirement, paying off taxes, or be used for additional estate planning purposes. Such trusts aren’t for everyone, so call us to see if a CRT fits in with your planning goals.

A charity, by the way, is defined as either a public charity or a private foundation, and this includes qualified organizations that are charitable, educational, religious, scientific, literary, athletic, or involving child or animal advocacy (and this includes churches and nonprofit schools, colleges, and educational institutions). To be qualified, the charity needs to meet requirements under section 501(c)(3) of the Internal Revenue Code (IRC).

Read More
Estate PlanningStephen PennerTrusts, Charitable Trusts, Charitable Remainder Trust
Three Ways To Benefit by Incorporating Charitable Giving Into Your Estate Plan
Three Ways To Benefit by Incorporating Charitable Giving Into Your Estate Plan

You are likely well aware of the tax benefits that come from donating to charity during your lifetime — donations to charity are tax-deductible. But you may be surprised to learn about the numerous benefits that are available when you incorporate charitable giving into your estate plan.

As with donating to charity during your lifetime, dedicating a portion of your estate to a charitable cause can reduce the taxable value of your estate. You can also receive significant tax savings by naming your favorite charity as the beneficiary of your IRA, 401(k), or other retirement accounts.

And if you have highly appreciated assets like stock and real estate that you want to sell, you can even set up a special type of charitable trust that can not only help you avoid both income and estate taxes but also create a lifetime income stream for yourself and your family, all while supporting your most beloved charitable cause.

Read More
Estate PlanningStephen PennerCharitable Remainder Trust, Charitable Trusts, Charitable Giving