t a c i t a strategy for minimizing taxes on appreciated assets t ax deduction for you a void...
TRANSCRIPT
T A C I T A strategy for minimizing taxes on appreciated assets
Tax deduction for you
Avoid capital gains
Charitable contribution
Income for life or
Tax-free passing of assets to your heirs
Prepared by
Elliot GoldbergRegistered Investment Advisor
Goldata Financial(610) 999-3599
Questions? Call Elliot at (610) 999-3599 2
The purpose of this presentation is to demonstrate how the TACIT strategy may benefit the reader and the charity they would like to support. This information is believed to be true and is subject to change.
THIS PRESENTATION IS NOT INTENDED TO SERVE AS A PROJECTION, PREDICTION OR ANY TYPE OF LEGAL OR TAX ADVICE OF ANY KIND.
Please contact your lawyer, accountant and other professionals to see if this strategy is right for you.
Disclaimer
Questions? Call Elliot at (610) 999-3599 3
Is this you?• Benefit from a charitable Tax-deduction this year• Benefit from Avoiding the capital gains tax on
selling an appreciated asset
• Support a Charity
• Receive monthly guaranteed Income for life or pass a portion of your estate to your heirs income
and estate Tax-free
Questions? Call Elliot at (610) 999-3599 4
Then T A C I T may benefit you!
Tax deduction for you
Avoid capital gains
Charitable contribution
Income for life or
Tax-free passing of assets to your heirs
Questions? Call Elliot at (610) 999-3599 5
1.
2.You donate your appreciated asset to the CRT and receive a charitable tax-deduction for the current year and avoid the capital gains tax on the appreciated asset
3. The CRT sells the appreciated asset for full market value and pays no income tax on the gain
Your lawyer sets up a Charitable Remainder Trust (CRT) to receive your appreciated asset
How Does It Work?
Questions? Call Elliot at (610) 999-3599 6
How Does It Work? Meet Bob and Judy
Bob wants guaranteed lifetime income
• The CRT purchases an annuity that will provide monthly income to Bob for as long as he lives
Judy wants to pass on assets to her heirs income tax and estate tax free
• The CRT purchased an annuity that will provide Judy cash to purchase a guaranteed benefit life insurance policy on herself naming her heirs as the beneficiary
• Upon her death, the life insurance proceeds pass to her heirs income tax and estate tax-free
4.OR
Bob Judy
Questions? Call Elliot at (610) 999-3599 7
For Income production
• Bob, age 65, bought 5,000 shares of ABC stock a few years ago for $10 per share. The current price is $100• Bob’s lawyer sets up a Charitable Remainder Trust (CRT)• Bob transfers the 5,000 shares of ABC stock to the CRT• Bob gets a current year charitable tax deduction of
approximately $206,000 • Bob pays no capital gains tax on the transfer • CRT buys an annuity that pays Bob $28,000 per year for
Bob’s lifetime• Charity receives remainder of trust assets upon Bob’s death
Bob WantsGuaranteed Lifetime Income
Questions? Call Elliot at (610) 999-3599 8
• Judy is age 50 and in good health• Judy also bought 5,000 share of ABC a few years ago for $10 per share• Judy’s lawyer sets up a Charitable Remainder Trust (CRT)• Judy transfers 5,000 shares of ABC stock to the CRT• Judy gets a current year tax deduction of approximately $197,000• Judy avoids paying the capital gains tax on the appreciation of ABC stock• CRT buys an annuity that pays $45,000 annually to Judy for the next 10
years• Judy uses $25,000 of this annual payout to buy a guaranteed benefit life
insurance policy. Judy’s heirs will receive over $1,100,000 income and estate tax-free
• After 10 years, the CRT is dissolved and the charity receives the remainder. The insurance policy is fully paid up
Judy Wants To Pass On Assets To Her Heirs Income Tax And Estate Tax Free
Questions? Call Elliot at (610) 999-3599 9
Frequently Asked Questions• What are my income options?
You can receive a fixed amount or a fixed percentage of the CRT assets annually.
• Do I have to take the income now?No. You can set up the CRT now, take the income tax deduction in the current year and postpone taking the income until later.
• Who can receive the income from the CRT?The income can be paid to you, the survivor of you and your spouse, your children orany entity you decide assuming the CRT meets certain requirements. Gift and estate taxes may apply.
• What are the best assets to donate?The best assets to donate are those that have significantly appreciated in value since their purchase.
• Can the donor be the trustee?Yes.
• Can I change the trustee?Yes. You can change the trustee as long as you are alive.
• Can I change the charity?Yes.
• Is this all I need to know?No. A meeting with your tax professional, investment advisor and estate lawyer is strongly suggested. This will allow them to
answer your specific questions based on your financial goals and customize your CRT to your needs.
Questions? Call Elliot at (610) 999-3599 10
Elliot Goldberg, Goldata Financial’s principal, is a Registered Investment Advisor who helps individuals and families use safe, guaranteed* investments that generate a reasonable rate of return to help meet current and/or future income goals. Every client is unique and their circumstances, timetables and goals are also unique. Elliot will sit down with you and develop a custom plan for helping you meet your current and/or future income goals. Questions are always encouraged and continuing communication is a great way to make sure your custom plan continues to meet your goals. If you like the idea of safe investments to help meet your current and/or future income needs, please call Elliot Goldberg at (610) 999-3599 or email him at [email protected].
*Guaranteed by a life insurance company
Meet Elliot Goldberg