For those that have a significant IRA and/or a retirement plan, there is a provision in the SECURE Act that can trigger a massive income tax acceleration after their death for their children. A Charitable Remainder Trust (CRT) may provide a powerful defense to this tax increase.
These materials will provide a better understanding of whether a CRT would provide a good option and help you identify which of your clients could benefit from this solution.
Summary of Contents
- What You’ll Discover
- Three Charitable Planning Techniques
- Who Gets What?
- Basic Strategy that Most Estate Planners Botch
- Charities Don’t Care the Form of Their Bequests
- All These Potential Gifts Are the Same to Charity
- Heirs Do Care About the Tax Implications of a Gift
- Examples of Inheritances with Enormous Tax Differences for Heirs
- Easy Method to Save $24,000 in Taxes on a $100,000 Bequest
- What We Almost Always See in Estate Plans
- Cost of Bequest to Heirs
- Alternate Strategy
- Benefit to Charity in Both Methods
- Cost of Bequest to Survivors — Leaving Money Through Will
- Cost to Heirs if Charity Receives IRA
- Alternate Idea If Client Was Happy with Heirs Receiving $100,000 Less
- Switch Who Gets What
- Questions on Who Gets What?
- Pay Taxes Later Except for the Roth IRA
- Dire Consequences of the SECURE Act
- Massive Income‐Tax Acceleration to Non‐Spousal Heirs
- SECURE Act ― Potential Impact to Child
- Exceptions to Income Acceleration
- Charitable Remainder Unitrusts (CRUTs)
- CRUTs After the SECURE Act
- CRUT vs. Kids as Beneficiary of IRA
- Charitable Trusts
- CRUT vs. CRAT
- Problem with CRAT
- CRUT vs. CRAT
- Factors Favoring CRUTs as IRA Beneficiaries
- Factors Against CRUTs as IRA Beneficiaries
- Special Message from Shirl Trefelner, CPA, CSRP
- Client Desires Override Math
- Great When You Need Trust Anyway
- So, CRUT or Just Leave to Kids?
- Questions on CRUTs or Anything Else?
- Cool Idea that Extends Beyond CRUTs
- Qualified Charitable Distributions (QCDs)
- QCDs
- Questions on QCDs or Anything Else?
- So Far, You’ve Discovered
- Claim Your Free Bonuses
- How to Claim Your Bonuses