Chuck McLucas, Jr., CPA, PFS, CKA’s Post

Transcript

How do you preserve and protect your assets so you and your family are comfortable in your retirement years? Every moment, every day, every year, our lives are defined by the choices we make, and those decisions can have real life consequences. Planning for retirement is one of the most important decisions you can make. So that leads us to the subject of this video, protecting what you've worked so hard for all your life, securing a retirement for you and your family to be comfortable and even leave a lasting legacy. What if I told you a charitable remainder trust, or C CRT is an approach to financial planning that allows you to personally receive a stream of income for the rest of your life, help your favorite charity, and also offer your family the potential to receive a greater inheritance and eliminate or reduce taxes. Your CRT can continue to grow and provide a legacy you can be proud of. What are some of the benefits of a charitable remainder trust? You completely bypass capital gains tax in the sale year of the asset. You're potentially bypass an estate tax. The personal cash flow benefits are a lifetime income for you and or your spouse and maybe kids too. A significant charitable contribution can be deducted in the year you create the CRT and carried over for five additional years. You greatly benefit the charity or charities of your choice. And potentially a greater inheritance will go to your heirs. As the court continues to grow, it provides for more than just you. As creator of the CRT, you will irrevocably transfer ownership of money, securities, real estate, or a combination of all three into the CRT. You or an institution you choose can be the trustee who controls the assets in the trust. The assets are then invested into a safe, diversified portfolio and the income provided by the CRT pays you income for life. It may also specify lifetime income for survivor, such as a spouse or children. Upon the death of the income recipient of the trust, the CRT assets become the property of your designated charity. A court can be funded with anything of significant value cash, real estate, stocks, bonds, or even business interests. When the assets are transferred into a CRT, you receive a substantial charitable deduction. The later sale of that property within the trust has no capital gains taxes. Plus, because the assets are in the trust and ultimately go to your charity, they are protected from any and all creditors. Our federal government actually encourages supportive charities by giving these tax benefits. It's a win win strategy to have your CRT working for you, your family and your charity. Generating additional retirement income through these tax savings in the trust is the miracle of compound interest for the rest of your lives. A CRT is flexible enough to satisfy any family or single person's financial needs. For more information on the benefits of having a charitable remainder trust, please contact Charles J Mclucas, junior president of Charitable Trust Administrators, Incorporated. 949-981-4452.