Family Office Services

Tax-Efficient Charity Example

As a result of implementing a Charitable Remainder Trust, the Smiths created a source of guaranteed income for their retirement while dramatically reducing their current income tax liability. They established a tax-advantaged fund for their favorite charities while creating an inheritance for their children and grandchildren that will pass estate tax free. This planning fulfilled the following goals:

  • Reduced federal estate taxes
  • Funded favorite charities
  • Generated an income tax deduction
  • Protected assets from creditors
  • Diversified their assets tax-free
  • Maximized tax-free compounding
  • Managed the timing of taxable income

The Smiths lowered taxes by $1,341,000 while improving lifetime income and benefits for heirs. Planning costs were less than 1% of tax savings.