Charitable remainder trusts can be powerful planning tools, but over time they can drift out of alignment with your goals. Sterling helps income beneficiaries evaluate whether selling, exchanging, or contributing their income interest may create a better fit for today’s reality.
Charitable remainder trusts (CRTs) offer the ability to defer capital gains, generate an up-front tax deduction, and create an income stream for life or for a set term. But by law, they are irrevocable, which means the key terms cannot be changed once the trust is in place.
Because life circumstances, tax environments, and financial priorities change over time, many CRTs eventually stop fitting the people they were originally designed to serve.
Since 2003, Sterling has reviewed thousands of CRTs and has successfully arranged over a thousand sale and tax-free exchange transactions.
“Most clients with CRTs don’t understand their full range of secondary planning options; they naturally assume that because their CRT is irrevocable, they’re stuck with it for life (or until the end of the trust term).”NAEPC Journal of Estate and Tax Planning, 2016
At no cost or obligation to you, and using just four data points, Sterling can review a CRT and provide an analysis showing what the income beneficiary(ies) would receive from selling the income interest to a third party.
The process begins with the Complimentary Review. Once Sterling has the necessary information, the review is typically sent within two business days.
A CRT income interest sale or tax-free exchange can typically be completed in two to four weeks after the decision to proceed.
Start with a complimentary review. Using just four data points, Sterling can review a CRT and typically send the review within two business days.
“Don’t judge each day by the harvest you reap but by the seeds you plant.” — Robert Louis Stevenson