This is Part 2 of a 3-Part series on Charitable Gifts of Life Insurance. (Catch-up with Part 1).  In this post, we will focus on policy suitability and claiming the charitable deduction and then wrap up with a Case Study. Part 3 will describe a client who gave an existing policy and a client who gave cash to a charity, which then purchased a new life insurance policy.

Read More »Which Life Insurance Policies are Suitable for Charitable Giving?

The winds of change blow constantly across the philanthropic landscape.  Legislation, donor transparency, even social media, have swept through the industry at different times to shake-up the status quo.  Here at Renaissance we decided it was time to kick-up a little dust for a cause we strongly believe is not getting the attention it deserves: the hyphen.

Read More »For Love of the Hyphen…

Read More »Move Beyond Checkbook Giving, Open a DAF

Suitability Key to Utilizing a CRT to Sell a Business

In Part 1 of this two-part series, we met a business owner confronted with the need to reduce the tax bite arising from implementing an exit strategy from his family business. We introduced a CRT as a component of an overall strategy to avoid capital gains and net investment income tax, create a significant income tax deduction, provide the business owner with income for life, and fund a significant charitable gift at death. In Part 2, we will discuss four suitability considerations in creating a CRT and explore ways to avoid the two most common hazards encountered when using a CRT to sell a business.

Read More »Using a CRT to Sell a Business: Part 2

A charitable remainder trust is a powerful technique to reduce the tax burden on the sale of a family business.

Read More »Using a CRT to Sell a Business

One of the most misunderstood rules in the world of charitable remainder trusts (CRTs) is the so-called “10% remainder test.” For lawyers and accountants reading this blog post, the test is found at Internal Revenue Code Sec. 664(d)(1)(D) for charitable remainder annuity trusts (CRATs) and Sec. 664(d)(2)(D) for charitable remainder unitrusts (CRUTs).

Read More »Understanding the CRT 10% Remainder Test

A charitable remainder trust, or CRT, enables donors to set aside assets for the future benefit of a charity while receiving income for life.

A CRT is tax exempt

A CRT is tax-exempt. Accordingly, it is not subject to tax on its income or capital gains. As a tax-exempt trust, a CRT is an ideal method for selling an appreciated asset and avoiding the resulting tax liability while retaining an income stream for life. Read More »What is a Charitable Remainder Trust?