Sale and Unitrust
Gene: We were fortunate to invest in the medical services company. The services this company provides have become more and more important, especially for senior Americans. We thought the value of this stock would grow, and it did. We originally paid $50,000 for the stock, and it had grown to $400,000 in value.
Carol: We talked about selling the stock, but that would have required us to pay a large tax bill. We had hoped to sell the stock to buy a vacation home. We had found a very nice summer cottage for sale on a nearby lake. The price was approximately $120,000.
Gene: We checked with our CPA. He suggested that we talk to a Gift Planning Consultant at the Catholic Foundation of Northeast Kansas. The planning consultant told us about a sale and unitrust. We were happy to discover that with a sale and unitrust we could transfer $280,000 worth of the stock into a special trust called a charitable remainder unitrust. The unitrust could then sell the stock tax free.
Carol: Best of all, we were able to sell the rest of the stock for $120,000 cash. The deduction from the gift transferred to the trust saved enough in taxes to offset the capital gains tax on the $120,000 that we received from the stock sale. As a result, we plan to open a Donor Advised Fund up with the Catholic Foundation of Northeast Kansas. This fund will enable us to make grants to causes over the coming years that are important to us and our family and not only achieve even more tax savings and organize our charitable giving, but it will be a witness to our children of how much we value giving to Catholic causes. We will put the Donor Advised Fund in our will and the children will inherit it and that is one way our legacy will be continued.
Gene: This was a wonderful arrangement. We now have income and are excited too for this time in our lives to share the gifts God has given us.
Carol: We talked about selling the stock, but that would have required us to pay a large tax bill. We had hoped to sell the stock to buy a vacation home. We had found a very nice summer cottage for sale on a nearby lake. The price was approximately $120,000.
Gene: We checked with our CPA. He suggested that we talk to a Gift Planning Consultant at the Catholic Foundation of Northeast Kansas. The planning consultant told us about a sale and unitrust. We were happy to discover that with a sale and unitrust we could transfer $280,000 worth of the stock into a special trust called a charitable remainder unitrust. The unitrust could then sell the stock tax free.
Carol: Best of all, we were able to sell the rest of the stock for $120,000 cash. The deduction from the gift transferred to the trust saved enough in taxes to offset the capital gains tax on the $120,000 that we received from the stock sale. As a result, we plan to open a Donor Advised Fund up with the Catholic Foundation of Northeast Kansas. This fund will enable us to make grants to causes over the coming years that are important to us and our family and not only achieve even more tax savings and organize our charitable giving, but it will be a witness to our children of how much we value giving to Catholic causes. We will put the Donor Advised Fund in our will and the children will inherit it and that is one way our legacy will be continued.
Gene: This was a wonderful arrangement. We now have income and are excited too for this time in our lives to share the gifts God has given us.
Is a sale and unitrust right for you?
If you own highly appreciated property, such as real estate or stocks, you could benefit from a sale and unitrust. The trust will help you bypass capital gains, will provide you with a charitable income tax deduction in the year of the gift and could increase your income. The sale part of this transaction could provide you with a one-time lump sum payment.
*Please note: The names and image above are representative of a typical donor but may or may not be an actual donor to our one of the Catholic Foundation funds. Since your unitrust benefits may be different, you may want to click here to view an example of your benefits.