A retired client needed to squeeze more income out of his portfolio of inherited low-basis stock. Many advisors would have just changed the portfolio’s investments, but we also changed its structure.
Though the client had a $2 million portfolio, it was in low-yielding stocks. After spending some time with him, and discovering that he eventually wanted to gift money to charities, we determined that donating some of the stock to a Charitable Remainder Unitrust (a “CRUT”) would allow him to reallocate his investments to high-quality and higher-yielding bonds, lower his current income taxes and reduce his estate taxes later. We helped the client find an attorney who could prepare the legal documents for the trusts and an accountant who could oversee the tax documentation.