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| Charitable Remainder Trust |
Fred Weaver bought a beautiful home in Oakland overlooking Lake Temescal. Along with 3,000 other homes, it burned to the ground in the 1991 Oakland hills fire. Fred rebuilt and lived in his new home for 10 years before moving to St. Paul's Towers.
Fred enjoyed knowing he stood to make a nice profit when his home sold, but he was uncomfortable with the 25% combined Federal and State capital gains tax he would face.
FRED: "I was happy my home had appreciated so much, but it was painful to think about the large checks I would have to write to the IRS and the State of California. Paying so much money to the government was definitely going to reduce the inheritance I wanted to leave my nephew."
FRED: "I attended a seminar given by the VP of Development for Episcopal Senior Communities, and was intrigued when he shared how a Charitable Remainder Trust could solve my problem and help build a new residents' center at St. Paul's Towers."*
FRED: "I learned that by transferring just a portion of my home to a Charitable Remainder Trust (CRT), I could bypass all of the capital gains, and receive a lifetime income. In addition, I learned I would receive tax-free cash from the net sale proceeds. This turned out to be sufficient to pay the entry fee at St. Paul's Towers and my annual fees for several years. Knowing I would receive all these benefits and that what is left in my trust at the end of my life will be used to make the Towers an even better place to live for future residents made it easy to decide on a CRT."
FRED: "My home sold soon after I established the trust. I avoided a huge tax bill and the monthly checks from the trust are deposited automatically to my bank account. With the tax problem solved, I'm going to be able to leave my nephew the inheritance I wanted to leave him."
*The Fred Weaver Residents Center is named after Fred.
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