Many people wisely choose to invest early in their lives so that they will have resources to care for themselves and their families when they are older. But they are often frustrated when they go to cash out their investment only to find they face a high capital gains tax. Well, a charitable remainder unitrust is a great way of caring for yourself and your family, contributing to God’s mission, and avoiding this high tax.
Here’s a hypothetical example of how this unitrust works:
When Gene and Carol were younger they purchased some stock in a small medical service company thinking that this stock would increase in value. The company did well, expanded, and now a larger company is thinking about buying them out. Gene and Carol’s stock is now worth four times as much as they bought it for.
They would like to take some of that stock and use it to buy a vacation home on a lakefront so they can relax in the summer with their grandkids. But if they cash out on their stock they face a high capital gains tax. So their financial advisor suggested they put the money in a charitable remainder unitrust. This enables the charity to sell the stock tax free. With the unitrust Gene and Carol will receive a fixed percentage every year from the principle of the trust. This provides them with an ongoing income.
Now, by putting a large portion of the stock in a charitable remainder unitrust, Gene and Carol were able to receive a big enough tax deduction to cash out the remainder of their stock tax free. So not only do they receive a big tax deduction and a fixed income, but they were able to support God’s work, being good stewards of what He has given them.
The charitable remainder unitrust is a great way of both providing for your own needs and partnering with Answers in Genesis to further our mission. Through your generous giving, Answers in Genesis is reaching out to a needy world with the gospel of Jesus Christ and the message of biblical authority.
To learn more about creative ways to give to AiG visit GenesisGift.org.