Viewing Question: Can I get income from a stock in a charitable trust?

Can I get income from a stock in a charitable trust?

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I inherited $50,000 of stock at a very low cost basis. I’d like to sell it, but I don’t want to take the tax hit. Someone told me that there are ways I could give it to charity and get income from it that way. Is that true?

1 Response

  1. I have some good news. If you inherited the stock, usually the cost basis steps up to the cost basis at the date of death value. As such, you probably don’t have to worry about the low cost basis. You should still check with an attorney or advisor to be sure.

    The charitable vehicle you’re talking about is called a CRUT or CRAT – basically with these trusts you donate the stock now and it goes into the charitable trust. The trust invests your donation and then you get the income from the investment. When you pass away, the charity receives whatever is left in the trust. Now, there are some expenses associated with these trusts, so it probably doesn’t make sense to do this for $50,000, in gains.

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