Tax Services

Following a merger, our client received a large block of restricted stock in a single public company. The client wanted to sell much of the stock and diversify his portfolio, but didn’t want to pay the large capital gains tax that would be assessed. We asked the client about his long term objectives and discovered that he wanted to provide a steady source of income for himself and his wife, and also to benefit a charity. We therefore recommended that a large block of the stock be placed in a charitable remainder trust with a corporate trustee. The trustee would sell the stock and diversify the portfolio, paying an annuity to the client and his wife for life. The stock was sold without payment of the large capital gains tax. The couple has a steady income stream for the future, and an immediate income tax deduction that the client used to offset gains from sales of stock outside of the trust.