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No interest in material wealth? Charitable remainder trusts are a standard old money tax dodge. He gets a tax free income for life, and when he dies, the charit
by menloparkbum 18y ago
No interest in material wealth? Charitable remainder trusts are a standard old money tax dodge. He gets a tax free income for life, and when he dies, the charity gets what's left. It also saves him 3.3 million dollars in federal capital gains taxes. It is shrewd but not particularly ascetic.
- sivers 18y agoThe income a person earns from their charitable remainder trust is absolutely not tax-free! It's taxed as regular income, for life. The charity - the final beneficiary - is the one that gets an additional 3.3 million dollars in your example, since the money was put into the trust before capital gains tax - instead of the donor paying tax first, then giving to charity after.