ABOUT HOSTS

Joe Anderson
ABOUT Joseph

As President of Pure Financial Advisors, Joe Anderson has led the company to achieve over $2 billion in assets under management and has grown their client base to over 2,160 in just ten years of the firm opening. When Joe began working with Pure Financial in 2008, they had almost no clients, negative revenue and no [...]

Alan Clopine
ABOUT Alan

Alan Clopine is the CEO & CFO of Pure Financial Advisors. He currently leads Pure Financial Advisors along with Michael Fenison and Joe Anderson. Alan joined the firm about one year after it was established. At that time the company had less than 100 clients and approximately $50 million of assets under management. As of [...]

If you have appreciated property that you’d like to sell (like real estate or a highly appreciated stock) but you don’t want to sell because of the large tax liability, this strategy is for you. A charitable remainder trust is an irrevocable tax-exempt trust designed to lower the taxable income of individuals by first dispersing income to the beneficiaries of the trust for a certain period of time, then donating the remainder of the trust to the charity of choice. Watch this clip to learn the tax advantages and rules that go along with this type of trust.


0:20 “Here’s how it works: you contribute the asset to the trust first of all, and then the trust sells the asset and because it’s a charitable trust, it’s tax exempt—it pays no tax”

0:34 “You receive an immediate tax deduction for a portion of that gift, usually 10% of the value of the property and most importantly is that you receive income and principle payments over your lifetime, and if you’re married, it’s over you and your spouse’s lifetime”
1:36 “The trust pays zero tax because it’s a tax exempt entity”

2:06 “You can set these trusts up in multiple ways”

2:48 “This strategy works well for a lot of different people; you just need to look at it to see what are the rules, how does it apply to your overall situation, because then you can take this tax deduction and start doing pretty cool things”

3:12 “You put the asset in the trust and let’s say you’re married; when the two of you pass away at some point, whatever is left in the trust at that time goes to charity”

3:38 “If you think you or your spouse have a long life expectancy, this could be a real winner for you even if you’re not that charitably inclined”