Tax-Free Sale

Marvin and Marilyn Richert purchased some development land outside of town. They thought it would be a good investment that they could later sell for a higher price.

Over the years, the development from the town moved toward the property and their land was now next to a large trailer park.

Marvin: We had owned this property for over 10 years. It has been a good investment and increased in value. However, we now would like to sell.

Marilyn: It would be nice if we could sell without paying a large tax. Our tax advisor has told us that if we were to sell, there would be a large capital gains tax. We also could use some tax deductions this year.

The good news is that Marvin and Marilyn can use a special trust to receive three very nice benefits. The benefits are:

• Bypass capital gain
• Increase income
• Charitable deduction

Marvin: We are delighted with our unitrust. With our unitrust, we saved about $27,000 in capital gains tax and received a charitable tax deduction of approximately $56,000!

Marilyn: Plus, we increased our income. The land was producing no income before. Now, we receive over $9,000 in income each year. This increased income is one of my favorite parts of the plan. Knowing that eventually the remainder proceeds will go to the charities that we have loved and supported really makes this a win-win deal for all.

*Please note: Since your unitrust benefits may be different, you may want to click here to view a color example of your benefits.