Cleve Baker '53
Twenty years ago, I found an opportunity and a means of doing this – through a Charitable Remainder Trust (CRT). The CRT allows one to place in trust assets which will go to designated charities after the death of the donor and the donor’s spouse, yet allows the donors to manage and live off the trust income during their lifetimes. The “necessity” I faced was an approximate 50% capital gains confiscation of an asset essential to my retirement. Dr. Webb used to stress the virtues of wisdom, prudence, and frugality. Strange that Uncle Sam should treat these virtues exercised in retirement-saving with a confiscatory tax – but then again, I also remember Dr. Webb on many occasions loudly proclaiming that “the power to tax is the power to destroy.” Right on!
At any rate, I am pleased, in my current ante-mortem state, to entrust to a CRT funds that, in my post-mortem state, will benefit the school. In the meantime, they will support me in retirement. As expected, these assets don’t pass on to one’s offspring, and there are strict accounting requirements for the IRS, who otherwise would get their hand on (“their”) funds. The Webb Development Office can help potential donors and their attorneys navigate the legalities.
In closing, to the school and the faculty (many now departed) that molded me, I am pleased to return a fraction of what I received.
Is a retirement unitrust right for you?
If you have a highly appreciated asset, such as real estate or stock, and are several years away from retirement, a retirement unitrust could help you sell the asset tax-free while saving for retirement. Please contact us if you have questions about a retirement unitrust.
Since your unitrust benefits may be different, you may want to click here to view a color example of your benefits.