A Donor's View

Bill and Barbara Jamison are in their middle 60s and looking forward to retirement. In reviewing their assets, needs and goals, they considered what to do with a piece of appreciated real estate.

Twenty years ago the property cost $25,000, and today it is worth $250,000. If they sold it, they could reinvest the proceeds in something that could produce retirement income. One problem: as soon as the property is sold, capital gains tax is due. This would give them less to reinvest for income.

They considered selling the property and giving a portion of the proceeds to HPI. The resulting charitable income tax deduction could then be used to help offset the capital gains tax. But they realized they needed more income than the remaining funds could generate. So, the Jamisons established a charitable remainder unitrust with HIF, which sold the property without incurring any capital gains tax. The full amount of the proceeds provided annual income to the Jamisons for life.

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