Charitable Lead Trust and Charitable Remainder Trust

Charitable Plans

Brokers Alliance can assist independent insurance agents with advanced planning strategies. We can provide the life insurance training and life insurance services that will set up agents and advisors to sell these more advanced plans with confidence.

The Charitable Lead Trust
QUALIFICATIONS:WebReferenceBoard3_Charititable Plans.png

  • Interested in a tax deduction: approximately 60% - 100% of contribution
  • Non-qualified assets can only be contributed (assets that have already been taxed)
  • Charitably inclined
  • Sweet Spot: have large IRA and large non – qualified assets for a ROTH conversion

SYNOPSIS:
Contribute monies into Strategy 4. Receive a deduction that can be used to offset an IRA to ROTH conversation. Money is distributed every year to a charity of your choice. After the term has been fulfilled, Strategy 4 will provide remaining assets to the client or elected beneficiaries.

The Charitable Remainder Trust
QUALIFICATIONS:

  • Interested in a tax deduction: approximately 15% - 40% of contribution
  • Charitably inclined
  • Would like to avoid capital gains from sale of an asset and still benefit from asset
  • Non-qualified assets can only be contributed (assets that have already been taxed)

SYNOPSIS:
This is the inverse of a Strategy 4. An individual provides a portion of assets to Strategy 5 and receives a tax deduction. Recurring distributions are received as income to the client. Strategy 5 uses a tax exempt entity to sell appreciated assets – to avoid capital gains. After the term of Strategy 5 has been fulfilled, the remaining value goes to the charity of your choice.