worked all my life selling cancer insurance. When I retired,
the stock the company gave me way back had grown to $400,000.
Although the dividends were only $4,000/ year, I couldn't
sell the stock and reinvest for higher income because
the capital gains on it were so high.
I learned about Charitable Remainder Trusts (CRT's). They
were explained to me like this: whatever money you have
consists of two parts. The first part you get to keep--your
personal financial capital, which you can spend and pass
on to your children. The second is destined by law to
go towards uses beyond you and your family--usually through
taxes. No matter what, you can't keep this "personal social
capital." But if you set up a Charitable Remainder Trust,
you can have control over where this money goes, which
is certainly not the case if you give it to Uncle Sam.
liked that a lot, so I got help setting up a CRT. Although
that officially means I have "given away" the $400,000,
it doesn't feel that way. First of all, I now receive
$40,000/year income from it for the rest of my life (as
well as years of major tax breaks for the donation.) That's
ten times what I used to receive, because the charitable
trust could sell and reinvest that stock with no capital
gains. Secondly, I am directing my personal social capital
to fund cancer prevention when I die. That feels mighty
good, given that my livelihood all those years was based
on people's fear of cancer. Given all the benefits, why
don't more people know about CRT's and use them?
More than Money
readers who have charitable
remainder trusts or are considering them? I'd be interested
to hear from you. You can reach me, Francis Breard, c/o
More than Money
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