Charitable Remainder Trusts
8. Example: Max and Jane Brody
Meet Max and Jane Brody. He's 65 and she's 63. He is planning to retire soon and they would like to convert an asset they have been holding for several years into retirement income.
Their combined life expectancy is 26 years-in other words, according to statistics, at least one of them should live for 26 more years.
They are currently in a 35% income tax bracket.
The asset they would like to sell is some stock that is currently valued at $500,000. Their cost basis, what they paid for the stock, is $100,000. They would like to earn 5% from this asset.