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Gene and Carol White were age 55 when they purchased some development land outside of town. They thought it would be a good investment that they could later sell for a higher price.
Over the years, the development from the town has moved toward the property and their land is now next to a large commercial store. They now rent the property to the commercial store and it is used for overflow parking.
Gene: We have owned this property for over 10 years. It has been a good investment and increased in value. We have received just enough rental income in the last few years to pay the taxes. However, we now would like to sell.
Carol: It would be nice if we could sell without paying a large tax. Our tax advisor has told us that if we were to sell, there would be a large capital gains tax. We also could use some tax deductions this year.
 The good news is that Gene and Carol can use a special trust to receive three very nice benefits. The benefits are:
- Bypass capital gain
- Increase income
- Charitable deduction
Gene: We are delighted with our special trust. The trust has a name and is called a unitrust. With our unitrust, we saved about $36,000 in capital gains tax and almost $18,000 in income taxes. That is over $54,000 in tax savings!
Carol: Plus, we increased our income. The land was producing almost no income before. Now, we receive over $12,000 in income each year. This increased income is one of my favorite parts of the plan.
Please note: The name and image above is representative of a typical donor and may or may not be an actual donor to our organization. Since your unitrust benefits under federal rules may be different from this person, you may want to click here to view a color example of your benefits based on your age.
For more information please select one of the following options:
1. If you would like to view a color presentation of the plan for Gene and Carol White, please click one of these buttons.
2. If you have property and would like to see a color illustration with your property value and your ages, then please click here.
3. If you would like to request a printed illustration of a Tax-Free Sale with your payout rate, then click here.
4. You may print a unitrust tri-fold brochure. The Sum of Objectives Realized or The Tax-Free Sale.
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