CLTs let you maximize your charitable giving with annual gifts while ensuring a tax-advantaged way to transfer wealth to the next generation. You can preserve more of your wealth for your heirs because you transfer property to them at a reduced value for gift tax purposes. When the trust expires, the assets return to the beneficiaries without being subject to gift or estate taxes. CLTs are useful when you want to:

• Receive an immediate charitable income and gift tax deduction.
• Minimize capital gains tax.
• Benefit from tax-free gifting.

With a CRT, you have the freedom to direct your wealth in ways that reflect your values and beliefs, while also receiving a payment stream during your lifetime. The CRT can provide income to you or your beneficiaries for a fixed term, or to last for a beneficiary’s lifetime. Best suited for assets with a low tax basis, CRTs can sell appreciated assets without triggering capital gains taxes, enabling it to reinvest the proceeds to generate income. Assets remaining in the trust when it terminates are distributed to your chosen charities. CRTs are useful when you want to:

• Receive an immediate charitable income tax deduction.
• Minimize capital gains tax.
• Manage a concentrated stock position in a tax-efficient way.
• Reduce the amount of your taxable estate.

Whatever your charitable goals, Bank of America Trust Services has the services and expertise to help you realize your vision while maximizing the advantages in your personal financial life.