Sale and Unitrust

When appreciated assets are sold, large capital gains taxes are incurred. A sale and charitable remainder unitrust may be a solution to avoid capital gains tax.

Sale and Unitrust

Property

Cash To Donor From Sale

Income to Donor

Unitrust

Marist

Benefits of a sale and unitrust

• Receive cash from the sale. You can use this cash to purchase another residence, to save for retirement, to travel, to meet your daily needs or to meet some other financial goal
• Receive income from the unitrust for the rest of your life and future retirement
• Obtain an income tax deduction that may reduce your tax bill this year
• Help advance the mission of Marist School with generous donation

How a sale and unitrust works

1. You establish a charitable remainder unitrust and transfer a portion of your assets to the trust.
2. The assets are then sold. You receive cash from the sale, and the rest of the sale's proceeds are paid to the charitable unitrust.
3. The trust will provide you with income for the rest of your life.
4. You receive a charitable deduction this year to offset your tax on the cash proceeds that you receive from the sale.

More on sale and unitrust

When transferring a portion of your primary residence to fund a unitrust, you may apply your one-time home exclusion to reduce or eliminate capital gains tax that would otherwise be due from the sale. Please contact your tax advisor for assistance and to determine if you should utilize this strategy.

Contact us

If you have any questions about a sale and unitrust, please contact us. We would be happy to assist you and answer any questions you might have.