In many cases today, the sale of appreciated property through a Charitable Remainder Trust not only provides a low cost gift to charity, but also leaves the donor’s family better off.
Below is a comparison of how selling appreciated land through a Charitable Remainder Unitrust can provide benefits over a direct sale. As you can see, in this example, by using a CRT to sell a highly appreciated ranch, a family actually comes out ahead by roughly $550,000 over the donor’s life expectancy by selling their property through a CRT. Instead of paying $442,243 to the government, they received $150,161 back from it – and, they leave a large gift to charity upon their death.
Option 1: Outright Sale
Outright sale for cash of real property valued at $2,000,000 with a $200,000 cost basis
Option 2: Charitable Remainder Trust
Sale of the property through a CRT
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