You can set up a charitable remainder trust and put money in it and avoid capital gains taxes. When you and your spouse die the money goes to charities that you determine. You and your spouse can collect yearly up to around 7% of whatever amount is in the trust or whatever percent you state in the trust. There is a specific date that the amount in the trust is valued at and that you get a percentage of. The amount in the trust is based on the trust managers and fluctates just like any other investments.
This is very brief and would suggest getting a certified fanancial planner to help you. If you decide to go ahead with it you will need a good lawyer to draw up the trust. This will cost you.
Something that is easier is gift annuity. The yearly paybacks are dependant upon your age. At age 65 you can get a guarantee of over 6 percent yearly earnings depending on who handles the annuity. When you and you spouse kick the bucket the money goes to a charity you disignate. Once again get you a good financial planner to go into more detail. Most universities have donnor officers who will be more than glad to work with you.
Whatever you do GET PROFESSIONAL HELP and don't rely on a message boards to make a final decision. It is ok to look for info but don't make a decision based on message boards.
To the best of my knowlede the crt is irrevocable but that is a question for lawyers, accountants and financial advisors to handle. You pay no capital gains tax when you set up the trust so it really doesn't matter. In addition you get a tax deduction for an amount determined by some irs formula. Once you get the deduction I don't think the irs is going to care about the doing away with capital gains. Once again, get a professional to answer specifics. Doing away with estate taxes would be more important to doing charitable donations such as crts'. Estate taxes make charitable contributions an almost necessity unless you want to give your money to uncle sam and he will give your money to some one. Above a certain amount in estate is heavily taxed and the amount over and above this is considered social capital. Either you name the recepient or uncle sam will.
Thanks folks. I knew some of the answers. It's almsot a crap shoot figuring out "who to trust" out here, you know? Just because a guy (or gal) has a paper on the wall saying they are a Certified Financial Planner... I still get the Enron jitters!
We're looking to guarantee some monthly income and as bad as I hate to, get rid of some of this .70 cost basis UPS stock. Not a bad dilemma as dilemmas go.
If you like college football and have a team you might look into colleges. A simple gauranteed around 6% monthly income based on what you gift is simple and most colleges have reputable and knowlegible people who take care of donors. From what I understand a gift annuity is about a page and one half document that requires a signature. I believe it is a lawyerless, accountant, fin advisor free transaction. If you don't have a team and want to part with some of your greenbacks or shares NC State will be glad to take your donation and I know a great lady there who will give you advice.(just kidding) You can help pay for the trip to the Gator Bowl.
Charitable Remainder Unit Trusts (CRUTs) are irrevocable. The plus side of this kind of investment tool is the tax write-off you get and the fact that you pay no capital gains tax on the sale of assets used to fund the trust. The CRUT can be self-directed or you can elect to have someone administer it for you. Fees to administer these trusts vary widely, so it is a good idea to shop around. There are also accounting fees every year at tax time. One way to "get around" the irrevocability of the CRUT is to set up another trust whose sole purpose is to own an insurance policy equal to the value of the assets put into the CRUT. This will enable your heirs to inherit an amount equal to what was put into the CRUT. This too will cost money.