Can a CRT be used to reduce tax impact of RMDs? i.e. instead of giving a portion of an RMD to a charity, route it to a CRT and build that CRT over time. The money would be irrevocably committed to a charity but not actually given until death. Would that have any beneficial impact on taxable income?
You talk about receiving income from a CRUT or an NIMCRUT. Is that income tax free? $50K a year is a lot of income. If it is tax free, it is well worth it especially if your charity is your heir. I see at 4:36 that it is taxed as ordinary income, then capital gains, then tax free munis depending how it is invested... So i have another question. Do you think it is something that is worth doing with $100K?
Tony, you and Eric put out some of the best content on TH-cam. Thanks
Wow, thank you Rob!
Can a CRT be used to reduce tax impact of RMDs? i.e. instead of giving a portion of an RMD to a charity, route it to a CRT and build that CRT over time. The money would be irrevocably committed to a charity but not actually given until death. Would that have any beneficial impact on taxable income?
Very helpful, thank you 👍
Our pleasure!
You talk about receiving income from a CRUT or an NIMCRUT. Is that income tax free? $50K a year is a lot of income. If it is tax free, it is well worth it especially if your charity is your heir. I see at 4:36 that it is taxed as ordinary income, then capital gains, then tax free munis depending how it is invested... So i have another question. Do you think it is something that is worth doing with $100K?
What happens if the charity no longer exists at some point?
Mic drop for all the crypto people with massive gains
The charity could be a legitimate 501.3c family Foundation that happens to employ your heirs?