As business owners age they often plan for the disposition of their stock to fund retirement and provide money to charity after death. Through the use of a Charitable Remainder Trust a stockholder may provide themselves with income until death and leave the rest to charity all with a minimum of tax implications. This can be especially useful for corporations that are closely held as an Employee Stock Ownership Plan may be used to fund the trust and transfer ownership of the company to the next generation of management.
See Business Succession Plan Uses CRT and ESOP, Charitable Planning, Apr. 1, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
