Capital Gains Tax Bypassed
Peter and Gail were nearing retirement. Over the years, with the help of
their financial advisor, they made solid investments in securities and
built a sizable portfolio. While their investments increased substantially
in value, their potential capital gains tax bill was rising. Now with
retirement on the horizon, they were looking for a way to sell their highly
appreciated stock, generate income for their future and avoid paying high
capital gains tax.
Peter: For many years we had supported the work of Free Will Baptists. Through an e-mail we learned that we could make a gift of our appreciated stock to Free Will Baptist ministries and bypass the potential capital gains tax cost we were facing. I was thrilled to learn that after transferring our portfolio to a charitable remainder trust, the trust would sell the stock tax free.
Gail: I liked the fact that the trust would provide us with income for our retirement years. If something happened to Peter, I would still be taken care of for the remainder of my life.
Peter and Gail decided to make a gift of their appreciated stock to establish a charitable remainder unitrust. They were thrilled at the prospect of creating future income while bypassing capital gains tax.
Peter: When I heard that in addition to the other benefits we would receive a charitable deduction for our gift, it was just icing on the cake! I wondered why everyone nearing retirement doesn't set up a charitable trust.
*Please note: The name and image above is representative of a typical donor and may or may not be an actual donor to our organization. Since your unitrust benefits may be different, you may want to click here to view a color example of your benefits.