Page 189 - VIP TASTE OF PITTSBURGH

Federal rules require you to choose an income payout rate that realistically can leave a remainder to charity. However, by specifying that your CRT is a “unitrust,” your future income will be calculated each year as a fixed percentage of the trust’s current fair market value. If that value increases over time with investment performance, your income also can increase.
Many reputable charities welcome CRT remain- der gifts, and they will appreciate your generosity. In addition, any assets passing from a CRT to a qualified charity at the end of the trust term, are not subject to federal gift or estate taxes. This can simplify matters for your heirs and reduce your ultimate estate taxes.
A CRT can have one planning drawback. By itself, it isn’t designed to leave any of the remainder interest to children or grandchildren. However,
this problem can be solved by using a portion of the trust income, or income tax savings generated by your trust contributions, to pay premiums on a life insurance policy that names your children or grandchildren as beneficiaries. Adding this concept to your CRT planning can “convert” assets for heirs, that otherwise would have been taxable to them, into an income tax-free and estate tax free legacy.
In summary, your financial advisor, working in coordinated effort with your attorney and tax advisor, can help you design a CRT strategy that meets your personal objectives, including steady current income, reward- ing favorite charities, saving taxes, and ensuring a legacy
for your loved one as well.
381 Mansfield Avenue, Suite 400 Pittsburgh, PA 15220
412.733.4033
Melanie Colusci, Damon Colusci, Deidra Jenkins,
and Alexandra Classic
Damon Colusci
and Mallory Credito
96
The information above is for educational purposes only and should not be considered specific financial or legal advice. Always, consult with a qualified advisor regarding your individual circumstances. Investing involves certain risks, including loss of value.
Registered representative of, and securities and investment advisory services offered through Hornor, Townsend and Kent, Inc. Member FINRA/SIPC. 130 Springside Drive, Suite 100, Akron OH 44333. 330-668-9065
Primary Care Financial Group and 21st Century Financial are independent of HTK.
Content prepared by:
© 2016 The Penn Mutual Life Insurance Company, Philadelphia, PA 19172 1582848RM-Aug18
TASTEPGH.COM