Charitable Remainder Trusts

[boont]

Looked into these once last summer when I had some property to sell that cost me $1.98 and was going to sell for over half a million.

Went with a 1031 tax free exchange instead and am very happy with that however....

I am still interested in this with some other property that I have the same tax problem with.

Anybody have any knowledge in this area? For instance, you own outright a piece of real estate that you have a 10 cent basis in that is now worth $750,000 or so.

Can I do a donation to get a stream of income for as long as I and the wife live? No heirs to worry about here.

b.

 

[ktupper]

Yes you can.

Here are some basics of how it works.

http://www.savewealth.com/planning/estate/charitabletrusts/

 

[Spanky]

... I had some property to sell that cost me $1.98 and was going to sell for over half a million.

That's a great return!

 

[boont]

"That's a great return!"

It is a great return. Too great, that's my problem. A friend once said, "That's the kind of problem you want to have." Agreed.

I guess if you live long enough in California you appear to get smarter than you really are.

boont

 

[Indexter]

cost me $1.98 and was going to sell for over half a million.

Let me guess: You bought some gum that, when chewed, had an image of Brittney Spear's baby on it and you sold it on Ebay.

 

[wabmester]

The things to watch out for with a CRT are:

1) Your income rate is designed to ensure that at least 10% is left to charity.

2) You still get taxed on the CRT income.

3) Watch out for trust creation and management fees.

If you run the numbers, you'll probably find that it only makes sense if you really want to give a chunk to charity.