Estella was nearing retirement. Over the years, with the help of her financial advisor, she made solid investments in securities and built a sizable portfolio. While her investments increased substantially in value, her potential capital gains tax bill was rising. Now with retirement on the horizon, she was looking for a way to sell her highly appreciated stock, generate income for her future and avoid paying high capital gains tax.
Estella: For many years I had supported the work of United Methodist Women. Through an e-mail I learned that I could make a gift of my appreciated stock to United Methodist Women and bypass the potential capital gains tax cost I was facing. I was thrilled to learn that after transferring my portfolio to a charitable remainder trust, the trust would sell the stock tax free. I liked the fact that the trust would provide me with income for my retirement years.
Estella decided to make a gift of her appreciated stock to establish a charitable remainder unitrust. She was thrilled at the prospect of creating future income while bypassing capital gains tax.
Estella: When I heard that in addition to the other benefits I would receive a charitable deduction for my gift, it was just icing on the cake! I wondered why everyone nearing retirement doesn't set up a charitable trust.
*Please note: The name and image above is representative of a typical donor and may or may not be an actual donor to United Methodist Women. Since your unitrust benefits may be different, you may want to click here to view a color example of your benefits.