Using a charitable remainder trust in retirement planning
Article Abstract:
Charitable remainder unitrusts (CRUTs) provide individuals with the opportunity to increase their personal involvement in their own retirement planning. They are irrevocable split-interest trusts where one or more non-charitable beneficiaries receive an income interest, payable at least every year, for a single life or more than one lives, or for a maximum of 20 years, and a qualified charitable organization receives the rest. Unlike qualified retirement schemes, CRUTs do not involve contribution limits and excise taxation. CRUTs are good for retirement planning since the grantor may maintain funding of the trust after its formation. Moreover, trust investments may be created to optimize payments in retirement. The three types of CRUTs are fixed-percentage CRUT, net-income CRUT and NIMCRUT. The last type is the most appropriate for retirement planning.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1996
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Options available when a family corporation no longer is an operating entity
Article Abstract:
When a closely held corporation sells its operating assets, it has several options for restructuring itself for tax and financial purposes. The corporation can merge into a regulated investment company, liquidate into a partnership, or remain a family holding corporation. The disadvantage to continuing as a regular C corporation is that company assets may be subject to double taxation. The factors to be considered when choosing a new organizational structure are discussed.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1987
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