Article

Charitable Remainder Trust

Diallo

Feb 17, 2025

Overview

Using a Charitable Remainder Trust to Eliminate Capital Gains Tax on the sale of Appreciated Assets that also Generates Lifetime Annual Cash Flow

Solution Detail

Pre-Sale Tax Analysis Link: https://taxwealth.com/pre-tax-sales-analysis-advisor/
Introductory Meeting/Analysis Review – 1 hour via Zoom
Due Diligence (Need a Resource)
- CRT Synopsis
- Estate Attorney Referral
Strategy Engagement via DocuSign – 50% Engagement Fee paid at the time of engagement or via Escrow if a sale occurs
Strategy Implementation
- CRT Formed
- Asset(s) is contributed
- Appraisal of value is made
- Charitable Tax Deduction is determined (based on the donor’s age and percentage of distribution from the trust)
- The income stream is established post-sale or contribution (Based on the percentage of distribution from the trust. 5% min.)
The remaining 50% Engagement Fee is paid once the CRT is completed
Life Insurance can be implemented as a wealth replacement strategy for beneficiaries: 3-6 month average process timeline
Administration can be outsourced to a Third Party Administrator or retained by the trust owner

Target Use Case(s)

Compensation Split

TaxWealth’s $5,000 Analysis Fee is not subject to referral compensation splits.
Based on TaxWealth’s Flat Fee Compensation Schedule for Tax Strategy Engagements. For Alliance Partner: 50/50 Split of the TaxWealth Planning Fee
Life Insurance Commission: Compensation to TaxWealth is split 50/50 provided the referring advisor is licensed for life insurance production
NOTE: If TaxWealth Receives a simple introduction and completes all the work of analysis, education, document collection, and strategy implementation, the Referral Compensation Split will be 20% to the Alliance Partner
Any Advisor or Client Referral from the TaxWealth Alliance agrees to these terms unless otherwise stated