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Enewsletter Estate Planning Guide

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Sale and Unitrust

Are your appreciated assets, such as stock, bonds or real estate, producing little or no income, but you don't want to sell them and be forced to pay a large capital gains tax? A sale and charitable remainder unitrust might be the reduced tax solution you're looking for!

How a sale and unitrust works

  1. You establish a charitable remainder unitrust and transfer a portion of your assets to the trust.
  2. The assets are then sold. You receive cash from the sale, and the rest of the sale's proceeds are paid to the charitable unitrust.
  3. The trust will provide you with income for the rest of your life.
  4. You receive a charitable deduction this year to offset your tax on the cash proceeds that you receive from the sale.
Sale and Unitrust
Donor Gives Part
of Property to
Donor Receives
Sales Proceeds &
Trust Income
Trust and
Donor Sell
Charity Receives
Sales Proceeds &
Trust Remainder

Benefits of a sale and unitrust

  • Receive cash upfront from the sale. You can use this cash to purchase another residence, save for retirement, travel, meet your daily needs or meet some other financial goals
  • Receive income from the unitrust for the rest of your life
  • Obtain an income tax deduction that may reduce your tax bill this year

More on sale and unitrust

When transferring a portion of your primary residence to fund a unitrust, you may apply your one-time home exclusion to reduce or eliminate 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

If you have any questions about a sale and unitrust, please contact us. We would be happy to assist you and answer any questions you might have.

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