Sale and Unitrust
Are your appreciated assets, such as stock, bonds or real estate, producing little or no income?
If you sell your appreciated assets, you will pay a large capital gains tax. A sale and charitable remainder unitrust may be the solution to avoid capital gains tax.
Flowchart: Donor transfers an undivided portion of property to a unitrust. When property is sold, the donor and the unitrust receive cash from the sale. The donor receives payouts from the unitrust and the Summa Health receives the remainder at the end of the trust term.
Benefits of a sale and unitrust
- You receive cash from the sale and use it to purchase another residence, save for retirement, travel, meet your daily needs or meet some other financial goal.
- You receive income from the unitrust for the rest of your life.
- You receive an income tax deduction that may reduce your tax bill this year.
- You help to advance the mission of Summa Health.
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. Your tax advisor can assist you in determining if you should use this strategy.
Contact us
If you would like more information about a sale and unitrust, please contact us. We would be happy to assist you.