Sale and Unitrust
Are your appreciated assets, such as stock, bonds or real estate, producing little or no income?
You may be concerned about the high cost of capital gains tax and the Medicare surtax, which combined could be up to 23.8%, with the sale of an appreciated asset. A sale and charitable remainder trust may be the solution to avoid capital gains tax and the Medicare surtax.
Benefits of a sale and unitrust
- Receive cash from the sale. You can use this cash to purchase another residence, to save for retirement, to travel, to meet your daily needs or to meet some other financial goal
- Receive income from the trust for the rest of your life and future retirement
- Obtain an income tax deduction that may reduce your tax bill this year
- Further the work of Oakland Symphony with your gift
How a sale and unitrust works
- You establish a charitable remainder trust and transfer a portion of your assets to the trust.
- The assets are then sold. You receive cash from the sale, and the rest of the sale's proceeds are paid to the charitable remainder trust.
- The trust will provide you with income for the rest of your life.
- You receive a charitable deduction this year to offset your tax on the cash proceeds that you receive from the sale.
More on sale and unitrust
When transferring a portion of your primary residence to fund a trust, you may apply your one-time home exclusion to reduce or eliminate capital gains tax and the Medicare surtax that would otherwise be due from the sale. Your tax advisor can assist you to determine if you should utilize this strategy.
If you have questions about a sale and unitrust, please contact us.