Charitable Remainder Trusts
28. Summary Comparison
This combination of a charitable remainder trust and a life insurance trust is a winning situation for everyone.
Even after paying the insurance premium to replace the asset for their children, Max and Jane increase their lifetime income by over $40,000 - to $729,341.
Their children will receive $500,000, the full value of the stock. That's more than twice what they would have received if the Brodys had sold the stock themselves, and paid capital gains and estate taxes.
Plus, Max and Jane are able to make a substantial gift - $500,000 - to their favorite charity, which they may not have been able to do without the charitable remainder trust.
We've covered quite a bit of information in this presentation. Let's briefly summarize the benefits of a charitable remainder trust.