Potential Losers in the Charitable Remainder Trust Strategy

Potential losers in the Charitable RemainderTrust (CRT) strategy Because the value of the trust will ultimately pass to charity(s) at the death of the last income beneficiary, there may be a concern about reducing the potential inheritance of children. LIFE INSURANCE A simple solution to this problem is the establishment of a second trust that would own life insurance on one or both of the parents. The children would be the beneficiaries of this wealth replacement trust. The parents would make gifts to the wealth replacement trust to provide the money for the premiums on the life insurance policy. With the increased income from the CRT, and the income tax savings as a result of making the gift to the CRT, in many cases there is more than enough money to pay for the life insurance. Professional For more information, Wealth Strategies Retirement, Estate And Legacy Planning www.pwsaz.com 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.