As a Ventura County estate planning law firm specializing in charitable trusts, our firm commonly receives questions about the details of charitable trusts. We have a team of experts with the legal knowledge to answer questions about the process of setting up a charitable trust, and what the benefits of proper estate planning can be.
Our firm can provide expert legal services as estate planning attorneys. We are a Southern California based law firm in business since 1985. We specialize in charitable trusts and estate planning matters.
To learn more about charitable trusts, or if you would like a free consultation to learn if a charitable trust is right for you, please do not hesitate to contact us at (805) 482-2282, or e-mail us.
How may it pay to give it away?
May we take the example of some stock you purchased several years ago for $30,000 that is now worth $300,000. If you sell the stock you will have $270,000 in capital gain. Your federal and state income taxes on a $270,000 gain would be, let us say 34.7%. You, thus, would pay $93,690 in income taxes on the sale, and this would leave you with only $206,310. If you then invested the $206,310 and received a 9 percent return, you would receive $18,568 in income each year – $12,125 after taxes.
On the other hand, if you put the stock in a CRT that pays an 8 percent return, with the CRT itself earning 9 percent on its investments, you would receive $24,000 in the first year – $15,672 after taxes. This is $3,547 more in after tax dollars than if you had sold the $300,000 asset.
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