John and Sue, both in their early 60s, are preparing for retirement and reviewing their financial options. They’re considering how best to manage taxes and future income from their real estate, stocks, and retirement accounts.
The couple has a deep love for children and a desire to live out James 1:27 by caring for orphans and widows. Confident their retirement needs will be met, they hope to use their surplus assets to make a lasting impact by supporting ICC.
They expect income from Social Security, IRAs, and other retirement plans, but additional funds will need to come from their appreciated real estate and joint investment accounts. Selling those assets outright would trigger significant capital gains taxes.
Their advisor recommended a Charitable Remainder Trust (CRT) as a smart solution. By transferring real estate and stocks into a CRT, they receive a lifetime income stream, avoid capital gains taxes, and earn an immediate partial tax deduction. These assets are also removed from their estate, reducing or eliminating estate taxes.
John and Sue are grateful. The CRT allows them to reduce their tax burden, secure their retirement income, and create a future legacy for ICC’s children.
