Created a Charitable Remainder Trust
To mitigate the capital gains taxes for a client on the sale of stock that had significant built up gain we created a charitable remainder trust (CRT) for the client. The client transferred the stock to the CRT and received an income tax deduction (and gift tax deduction) on the transfer. The trustee of the CRT sold the stock and, because the CRT is tax-exempt, the capital gains taxes were not immediately due in the year of the sale. Instead, the capital gains is slowly distributed to the client with each annual payment the CRT owes to the client.
