Benefits of a Charitable Remainder Trusts

Charitable Remainder Trust Charitable Remainder trusts (CRTS) are a CRTS have become very popular because they provide significant tax incentives. smart part of Financial Planning Strategies. Here are seven important benefits of CRTS: The gifted, appreciated asset is sold tax-free by the trust. The sale is not subject to capital gains 1 tax. MODE M/EX ON VAC TAX RATE TAX+ TAX- The gift creates a current income tax deduction. The deduction can be up to 30% of the adjusted 2 8 gross income of the donor. 3 The trust can create a stream of income for life for the donor(s). The gifted asset is removed from the taxable estate of the donor thus reducing potential estate 4 tax. 5 The undistributed earnings in the trust grow tax- free. 6. Donor recognition for making a significant gift to charity. 7 Professional investment management. CRTS are irrevocable trusts which mean that, once established, they cannot be changed. However, the The CRUT is by far the most popular type of CRT because it has the Another type of Charitable Remainder donor does retain the potential to increase Trust is known as the the income stream ability to change trustees as well as the Charitable Remainder over time, however it also may decrease Unitrust (CRUT). charitable beneficiaries of the based on the trust. performance of the trust investments. Professional Wealth Strategies www.pwsaz.com For more information, Retirement, Estate And Legacy Planning Fixed insurance products and services offered by Professional Wealth Strategies. Professional Wealth Strategies does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.Professional Wealth Strategies, 3573 East Sunrise Drive, Suite 119, Tucson, Arizona 85718, (520) 529-3644. Securities and Advisory Services offered through Commonwealth Financial Network, www.FINRA.org/www.SIPC.org__a Registered Investment Adviser. This communication is strictly intended for individuals residing in the states of AZ,CA,CT,HI,MI,OH,OR,TX,UT,VA,WA. No offers may be made or accepted from any resident outside these states due to various state regulations and registration requirements regarding investment products and services.