Chris & Terri

The Benefits of A Charitable Remainder Trust

 

Chris and Terri Poulos felt it was the right time to sell an investment property. However, much of their gained value would be eroded by taxes. Chris researched and discovered the advantages of a Charitable Remainder Trust (CRT). Having had past positive connections with our university, he visited the Point Loma Nazarene University website and was pleased to find that we could assist him with a CRT.

Chris contacted the Office of Planned Giving expressing an interest in receiving some cash from the sale, minimizing taxes and establishing a flow of income from the gift portion. We prepared some information to share his best options that balanced the cash he desired and the tax savings possible generated by a very nice future gift portion to PLNU as well as another gift to a college where Terri works.

After receiving an official appraisal of the property, we helped Chris contact an attorney that is qualified and experienced in drafting a CRT. The attorney also transferred the property into the trust so that it could be listed and sold by the trust. (The transfer to the trust is a key step to take before a commitment is made to any potential buyer.)

Here are the benefits Chris and Terri will receive:

  1. A bypass of capital gains tax on the gift portion 
  2. A portion of immediate cash
  3. A charitable income tax deduction to offset taxes on the cash received 
  4. An increase in income over prior rental income 
  5. Freedom from managing and maintaining the rental 
  6. The joy of making a gift toward the future of Christian education