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Landing on a Retirement Solution
Retirement Unitrust
“We already have an IRA that we plan to use for retirement. Now, with the extra income from this retirement trust, we will be able to travel and really enjoy our golden years.”
When her parents passed away, Mary inherited the farm where she grew up. Over the years, the city has grown and now the farm is within the city limits. Several developers would like to build homes on the farmland.
Mary said, “My husband, Bill, and I have received modest payments from the farm over the years. We allowed a neighboring farmer to graze his cows on the farm until recently. I inherited the farm several years ago, and the value of the farm has greatly increased.”
Since it is a good time to sell the land, Mary and Bill would like to take advantage of the opportunity. They checked with their tax advisor and the farm could be sold, but there would be a very large tax to pay. They would like to let the sale proceeds grow for about 10 years until they plan to retire. In fact, they hoped that they could sell tax-free and allow the proceeds to grow tax-free as well.
“I was excited to learn from our tax advisor that there is a plan that does provide for our retirement,” Bill said. “She explained that we could give the land into a special trust. With this trust the farm could be sold tax-free and the cash invested for growth. The proceeds can then grow tax-free inside the trust until we retire. At that time, the payouts will be taxable, but we could have as much as $900,000 in the trust.”
“We will enjoy a very nice retirement,” said Mary. “We already have an IRA that we plan to use for retirement. Now, with the extra income from this retirement trust, we will be able to travel and really enjoy our golden years. It’s a really brilliant solution that allows us to contribute to Episcopal Relief & Development while we secure our own financial future.”
Contact us to find out how you can develop a retirement unitrust.
