Cash In Valuable Collections, Tax Free

Gerald has collected rare books for most of his life – quite successfully, in fact. He’s invested $100,000 over the years and the collection has grown in value to $600,000. Gerald is retiring soon and wants to sell his collection to augment his retirement income. His accountant tells him, however, that his $500,000 profit will be subject to a 28% tax, taking away $140,000 from his nest egg.

Gerald can avoid that tax, however, by transferring the books to a charitable remainder unitrust that pays him a 6% income for life, with eventual benefit for our programs. After the trustee sells the books, Gerald will be entitled to a partial charitable deduction. More important, he can receive income from the full $600,000, not the $460,000 he would have kept had he sold the books himself. This gift technique works with all types of “collectibles,” including works of art, antiques, stamps, coins and other items that have increased in value over the years. Please call us for details.

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