You have a rental property or an appreciated piece of property that is worth more than you paid for. You want to sell it, but do not want to pay capital gains. Many people use 1031 Like kind exchanges to save from the tax on the sale, but this is not always the best choice because you are still invested in real estate. A second option is to donate it to a charity by putting it into a charitable remainder trust.
1. Donate the appreciated property to a charitable trust. You will get a sizable charitable contribution deduction that year, the older you are the more significant the deduction.
2. The charity will sell the property with no capital gains, take the money, and invest it all into a trust.
3. You will get a monthly or quarterly annuity payment from the trust for the rest of your life.
4. The downside is if you want to leave the estate to your children. However, what you can do instead is take some of the money out of the trust and buy a life insurance policy for your heirs. This is called a wealth replacement trust,
The above is a summary of a radio show on MMFN Money Matters Financial Network, with host