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Abstract: 

What do you recommend for the retiring employee, or the elderly client with no liquidity, who holds low basis, high value assets? What do you recommend for a client who would like to make a gift to charity, but retain control and receive the financial benefits of particular assets during his or her lifetime? Your client may want to avoid capital gains tax, remove assets from the taxable estate, provide current or future income for the family, and minimize income tax. Most planning techniques accomplish some but not all of these objectives. Before recommending a sale, gift or other taxable transaction, the advisor should consider the benefits of a charitable remainder trust (“CRT”). What do you recommend for the high net worth client who would like to benefit charity now, and transfer assets to a younger generation with little or no transfer (estate or gift) tax? What do you recommend for the client who does not need immediate income, but still wants long-term capital appreciation? Again, there are several techniques which might be used to achieve this goal, but the advisor may wish to consider a charitable lead trust (“CLT”).

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Affiliations:  1: Lommen, Abdo, Cole, King & Stageberg, P.A.