Before You Sell – Charitable Remainder Trust

Are you thinking of cashing in some of your stocks or bonds? Do you have a vacant lot, a vacation home, or some other piece of real estate you may sell soon? Whether securities or real estate, if you have owned the asset for more than a year and the value is higher than your cost, you may want to consider placing the property in a charitable trust. (Note: Special rules apply when selling a personal residence.)

The trustee of a charitable trust can sell appreciated assets without incurring tax on the capital gain. Then the entire proceeds, less selling costs, can be invested to provide a flow of income to you as an income beneficiary of the trust. At the end of the trust, normally upon the death of the income recipient(s), whatever is left will then be distributed to one or more charities.

If you sell your property yourself, a significant amount of the sale proceeds could be lost to taxes. But with this trust, the full value (less selling costs) is invested to meet the goals of the trust. Think of the extra income this could mean to you during your lifetime.

Because the trust is irrevocable (you cannot undo it) and the remainder eventually goes to charity, you receive an immediate income tax deduction when you establish the trust. And, if you cannot use all of the deduction the first year, the government allows you up to five additional years.

The beautiful thing about a charitable remainder trust is that it allows you to make a deferred gift now to Saint Leo University and yet retain a lifetime flow of income to help you through your retirement years.

 

Next Steps

  1. Contact Stephen Kubasek, director of Planned Giving, at (352) 588-8355 or stephen.kubasek@saintleo.edu for additional information on giving personal property.
  2. Seek the advice of your financial or legal advisor.
  3. If you include Saint Leo University in your plans, please use our legal name and federal tax ID.

Legal Name: Saint Leo University
Address: PO Box 6665 - MC 2227, 33701 State Road 52, Saint Leo, FL 33574
Federal Tax ID Number: Please contact us for our federal tax ID number.

 
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results.