Stock with a zero basis can be a tax headache for those about to retire that seek to divest of their assets in order to fund a retirement plan that provides income and liquidity. By using a couple of different charitable remainder unitrust to take the bulk of the stock sale income the estate planner may offset the capital gains on the portion that was retained for liquidity purposes. This article provides step by step instructions on how to format this tax savings strategy using a hypothetical based on a $3.5 million dollar sale of stock.
See Three-Way Split Sale, Charitable Planning, May 14, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
