Charitable Remainder Trust

Maude and Miles Gillingham have owned and managed several rental properties in Florida for more than thirty years. As they prepared for retirement, they wanted to step away from the real estate business and simplify their estate. However, they were concerned that selling their properties would trigger significant capital gains taxes and eliminate their rental income.  

They shared these concerns with their CPA, Rueben, and asked whether there were strategies to reduce the tax burden. Because Rueben knew they regularly support several charitable organizations—and hoped to give even more in the future—he suggested they consider a Charitable Remainder Trust. By donating one or more properties to the trust, the trust could sell them without incurring capital gains tax, provide Maude and Miles with income for the rest of their joint lives, and ultimately distribute the remainder to charity. Their gift would also generate a charitable income tax deduction that could help offset capital gains from the properties they planned to sell themselves.  

Maude and Miles were enthusiastic about the idea and asked how to get started. Rueben recommended contacting Community Foundation Tampa Bay, which could receive the remainder of the trust and create a fund in their names to support all of their favorite charities. They called the Foundation from Rueben’s office to learn more.  

The Gillinghams donated two properties to the Charitable Remainder Trust and sold the others on their own. They are now retired, feel good about their retirement income, and the charitable legacy they have designed.