The Retirement Unitrust
Mary grew up on a farm. When her parents passed away, she and her husband Bill inherited the farm.When Mary was a child, the farm was out in the country. Now that the city has grown, the farm is within the city limits. Several developers would like to build homes on the farmland.
Bill: Since it is a good time to sell, that's what we would like to do. We would also like to invest the sale's proceeds for growth for about 10 years until we retire. However, when we checked with our tax advisor, she told us that if we sold the farm, we would have a large capital gains tax bill.
Mary: But then she told us about a plan that would provide for our retirement. She explained that we could transfer the land into a special retirement trust. Once inside this trust, the farm could be sold tax free and the cash invested for growth. The proceeds would grow tax free inside the trust until we retire. By the time we retire, the payouts would be taxable, but we could have as much as $900,000 in the trust.
Is a retirement unitrust right for you?
If you have a highly appreciated asset, such as real estate or stock, and are several years away from retirement, a retirement unitrust could help you sell the asset tax-free while saving for retirement. Please contact us if you have questions about a retirement unitrust.
*Please note: The names and image above are representative of a typical donor and may or may not be an actual donor to our organization. Since your unitrust benefits may be different, you may want to click here to view a color example of your benefits.
WHAT WOULD YOU LIKE YOUR GIFT TO ACCOMPLISH?
When you entrust your charitable gift to The Community Foundation, you have the flexibility to designate the purpose of your gift, and the confidence that The Community Foundation will carry out your plans for generations to come. Your gift can support a specific organization or cause, such as education or the arts, create a charitable fund that involves your children and grandchildren in a family tradition of philanthropy, or provide funds that The Community Foundation will use to address the changing needs of our community.