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Ambrose and Mary White purchased stock in a small medical service company several years ago. The company has done well. A larger company is now discussing the possibility of buying the smaller company. Gene and Carol are looking for a way to save taxes.
Ambrose: We were fortunate to invest in the medical services company. Over the years, medical services have become more and more important, especially for senior Americans. We thought this stock would grow and, indeed, it has increased in value.
We paid about $50,000 for the stock and it is now worth $400,000. If we were to sell the stock, we would pay a large tax.
It looks like the company may be sold to a larger company. There is no sale agreement yet, but it could happen in the future.
 Mary: We have always talked about increasing our giving to a few of our favorite ministries but the timing was never right. I'm excited about the possibility of funding Family Research Council's adult stem cell research.
Ambrose: How can we take $120,000 in cash from the value of the stock and not pay tax? We checked with our CPA. He suggested that we talk to a gift planner at Family Research Council. We were happy to discover that we could transfer $280,000 worth of the stock into a special trust. This trust is called a unitrust. When we transfer the stock into that trust, it can then be sold tax free.
Mary: Best of all, we were able to sell the other $120,000 of the stock for cash. The deduction on the charitable trust saved enough in tax so that we did not have to pay tax on the $120,000. The full $120,000 was available to give to FRC's research on the stem cell issue. I hope as a result David Prentice, FRC's stem cell expert, will be able to tell more people about the myth behind embrionic stem cell research.
Ambrose: This was a wonderful agreement. I am pleased that we were able to set up the trust. We now have income from our unitrust and are delighted at the work David Prentice is doing at FRC.
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 sale and unitrust benefits under federal rules may be different from this person, you may want to click here to view a color example of your gift 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. Perhaps you would also like to use stock or land for a combination sale and trust. If you would like to see how this plan works for your age and property value, then click here.
3. If you would like to request a printed illustration of a Sale and Unitrust with your payout rate, then click here.
4. You may print a Sale and Unitrust tri-fold brochure. Click Here.
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