If you are like most individuals, the value of your stock and other investments has grown over the years. Perhaps you are entering your retirement years and wondering how you can turn your highly appreciated asset into extra income.
You may also be concerned about the mounting capital gains taxes due. If you sell your stock in today’s market, you will forfeit a portion of the proceeds to taxes and that means less cash for you. In short, you need a way to sell your stock and avoid capital gains.
If you identify with either of these situations, the solution is a charitable stock plan. A variety of charitable plans can help you achieve your goals for tax savings and even provide income.
Gift Annuity for Stock
You may transfer your stock to fund a charitable gift annuity that will avoid capital gains tax and pay you fixed income for life. The rates can be quite high depending on your age and a part of your income stream may even be tax-free! You will receive an income tax deduction for your gift in the year you set up the annuity. At the end of your life, you have the satisfaction of knowing the remaining value is going to help benefit future generations of chiropractic students at Palmer College.
Unitrust and Sale of Stock
By giving your stock to fund a unitrust you can avoid capital gains tax because the trust will sell your stock tax free and then invest the proceeds to provide you with income for life. You will receive a charitable income tax deduction in the year the trust is established and benefit from tax savings that could be spread out over a number of years. The students at Palmer College will benefit from the future remaining trust value.