For Professional Advisors

The potential for philanthropy in our region is enormous. So many individuals have the resources and the inclination to be philanthropic, but not the inspiration or the opportunity. To achieve their potential, potential donors need the encouragement and support of their peers, their families and their professional advisors.

The best estate plans not only enable clients to pass their wealth to their heirs in a strategic and tax-efficient manner; they help inculcate values and positive behaviors too. A charitable lead trust is one wonderful tool that you can use to accomplish these in your estate plan. The charitable lead trust allows you to ultimately transfer assets to your family at a reduced estate tax cost while making a gift to charity.

While it may seem too good to be true, through careful charitable gift planning, an owner of a “C” corporation can sell her company, avoid paying capital gains tax on virtually all of the gain in her business’s stock, and receive income for life based on the full value of the stock. How can this be accomplished? By first transferring the stock to a charitable remainder unitrust (CRUT), then selling the assets of the corporation, and finally, by making liquidating distributions from the corporation to the CRUT.

Article includes questions that probe your client’s attitude toward philanthropy - How do you wish to be remembered by your family, friends and community? How do you wish to be remembered by your family, friends and community? If you had one year left in your life, how would you spend your time and resources? What do you consider the highest purpose of your life? What do you consider the highest purpose served by your assets?