Widow
Age:70
Adult children
Appreciated stock or real estate

Problem: Need more income, want to avoid capital gains tax

Solution: CRT with replacement life insurance

Husband and Wife
Both age 70-75
No Children
$200,000 of highly appreciated public stock

Problem: Need more income, (Not really a tax problem)

Solution: CRT (no insurance)

Husband and Wife
Both age 60-65
Young adult children
Business asset: Apartments, mobile home park, raw land, closely held business, office building

Problem: Need retirement income, need income tax deduction

Solution: CRT and irrevocable life insurance trust

Factors that may indicate a charitable remainder trust situation:

1. Client age 60 or older

2. No children

3. Appreciated assets

4. Need more income

5. Avoid capital gains tax

6. High tax bracket and need income tax write-offs

7. Need to change an asset

(Get out of a business, don't want to manage an apartment, leverage their unified credit in gifting, diminished economic value through depreciation, split of the assets through partnership split or divorce.)

8. Taxable estate-federal estate tax

9. Diversification

10. Charitable intent

11. Young donor with a large position in a single stock