Do you have any idea what we should know about tax-efficiency of Charitable trusts ? Just the fact that they are tax-efficient or we also need to understand where their tax-efficieny lies ? The only one implication of this conception in CFA textbook is that capital gain tax is eliminated or deferred for low-basis stock. Am I right that only CRT are tax-exempt and CLT only could use payments to charities as a deduction for the purposes of income and capital gain taxes? Ok, if I’m right we could then eliminate or decrease capital gain tax but what they mean by tax deferring here ? And there is nothing about income tax deduction for CRT, gift and estate tax in order to compare the charitable trusts with other strategies… As a whole there are more questions than answers.
Such BS, yea its really tax efficient to give all you money away.
Yea, that’s the only detail they gave to us…You could transfer to charities either annuity payments or remaining amount and that will be more or less tax-efficient 