Real Estate for a Charitable Remainder Unitrust
Calvin and Marian Ewert had successfully invested in real estate over the years and were counting on the equity to provide retirement income. However they knew that if they sold the property outright they would have a large capital gain tax consequence. When the real estate market was favorable and retirement seemed possible, they contacted MB Foundation to inquire about the possibility of putting at least part of the property into a Charitable Remainder Unitrust. By putting a little more than half of the property into a Unitrust prior to the sale, the Ewert's were able to have a lifetime income from a larger balance than if they had sold it outright. Also, the charitable tax deduction that resulted was large enough to counter much of the capital gains on the outright sale of the remaining portion of the property. This was also a way to ultimately give back to God a portion of what they had received as a blessing from God. This was truly a Win-Win proposition for both the Ewerts and for the charities that are very important to them.