Charitable giving and good stewardship are very important to the client. In her 70s, she wanted to produce an income stream from the assets throughout the remainder of her life without selling the highly appreciated stock, triggering a large tax liability.
We partnered with an estate attorney for legal counsel, crafting a Charitable Remainder Annuity Trust to receive some of the most highly appreciated assets. This resulted in a substantial charitable deduction in the year of funding, which enabled Roth conversions in lower tax brackets. This step also allowed the client to name a charity as the recipient of this irrevocable trust upon her passing while continuing to receive income over time, allowing the assets to be properly diversified and invested in accordance with her risk tolerance.
