For several decades, the charitable remainder trust has proven to be a great solution provider for the charitably inclined. The solutions it provides – flexibility, increased income, avoidance of capital gains taxes – are so important that we often overlook some of the other lesser known but perhaps equally important advantages.

Consider a person who has a great amount of their worth invested in a single stock. This may be quite common for folks who worked a long career with a particular company. Over the years the stock has done quite well, but with a changing economy and business environment, there are concerns of “too many eggs in one basket” and that a wider diversification is in order. Under normal circumstances, to diversify such a large holding would result in very high capital gains taxes. However, if that stock is placed in a charitable remainder trust, diversification can be accomplished free of such taxes. One result is going to be less worry about the risks of too much concentration in one stock …and much better sleep at night.

Consider also those who have a wonderful farm or ranch that has served them well for many years. Through good times and bad, the property has grown in value. Every year there are grazing leases to arrange, hunting leases to negotiate (and hunters to endure), or oil and gas leases and right-of-way issues to face. The owners may be considering moving to town, traveling a bit, or simply not having to manage the property anymore. Perhaps, because of health or changed interest, it has become more of a management issue than they want to or can handle. Once again, the charitable remainder trust offers flexibility to fit the circumstances, increased income, avoidance of capital gains taxes, and prudent diversification. This time, however, we add the benefit of professional management of the charitable remainder trust so the donors can live lives free of all the details of managing the property.

Our job at the Foundation is to help you find solutions. No cost, no obligations – just straightforward answers. All you have to do is ask. Call us on our new toll-free number, 888-861-6385 or roger@rogerellison.com .