Kent Endacott Explains the Economics of a Charitable Remainder Trust for the American Heart Association
Kent Endacott, co-founder of Endacott Timmer, recently wrote a piece for the American Heart Association’s Professional Advisor Network on one of the more underused tools in estate planning: the charitable remainder trust, or CRT.
We work with clients across Nebraska who want to support causes they care about — like the fight against heart disease and stroke — without giving up the income they’ll need in retirement. A CRT can do both. It lets someone convert a highly appreciated asset into a lifetime income stream, take a meaningful up-front income tax deduction, and ultimately leave the remainder to a charity they choose.
In the article, Kent walks through a real-world example: a couple holding a $1 million investment portfolio with a low tax basis. Instead of selling outright and losing a large share of the gain to capital gains tax, they fund a CRT with those assets. The result is a six-figure income tax deduction, an ongoing income stream for retirement, and a future gift to the American Heart Association — all from the same asset.
If you’re charitably inclined, sitting on appreciated stock or property, and thinking ahead to retirement income, this strategy is worth understanding.
For more insight on this story, get in touch with Kent Endacott
Kent Endacott is a co-founder of Endacott Timmer. He has been serving the Lincoln community for more than 30 years and has extensive experience in IRS matters, dealing with large estates.