Charitable Trusts: Advanced Planning Tips

While higher tax rates have increased high-net-worth clients’ interest in charitable remainder trusts (CRTs), increasing the lettering that goes with CRTs also may increase the planning possibilities.

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Comments (1)
Interesting topic.

There are an estimated 100,000 CRTs in the U.S. They were very popular in the 1990s and 2000s.

It's been my experience that there are relatively few new Charitable Remainder Trusts (CRATs, CRUTs, NIMCRUTS) being created, as tax rates are higher than a few years back. Remember the Bush Tax Cuts expiring a few years back?

In fact, many CRT Income Beneficiaries are "Cashing In, By Cashing Out' by Monetizing their existing CRTs-via private sales. (Did you know this option exists?). Most Attorneys and CPAs don't know this, either.

FYI: A private marketplace was established over twelve years ago that allows many families to sell their Charitable Remainder Trusts to other charitable families for a Lump-Sum Cash Sales. In fact, the Buyers (typically, tax advantaged individuals) often pay Sellers "Premiums" to the Net-Present Values of these existing Trusts. This can be helpful to holders of CRTs that have interest in maximizing the cash value of the Trust. There are also, potential tax benefits.

I'd be happy to share a complimentary White Paper: "The Advisor's Guide to CRT Income Interest Sales" that explains this unique, niche strategy with interested Advisors. If you work with HNW/UHNW Families, CPAs and Trust-Estate Attorneys, this is valuable information you'll want to explore in more detail.
Posted by Dean P | Tuesday, November 11 2014 at 6:20PM ET
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