The Retirement Unitrust

Bruce and Dolores accumulated a great amount of property over the years.

Most of this property was out in the country. The city now has grown until the property is now within the city limits. Several developers would like to build homes on the land.

Dolores: We have received no payments from the land over the years. Also the value of the land has greatly increased.

Bruce: We checked with our tax advisor and the land could be sold, but there would be a very large tax to pay. Since it is a good time to sell the land, we would like to sell. And then it would be good to let the sale proceeds grow for about 10 years until we plan to retire. In fact, we are hopeful that we can sell tax free and then allow the proceeds to grow tax free.

Dolores: I was excited to learn from our tax advisor that there is a plan that does provide for our retirement. 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 the value of the trust would almost double.

Bruce: We will enjoy a very nice retirement. We already have an IRA and are planning to use that for retirement. Now with the extra income from this retirement trust, we will be able to travel and really enjoy our golden years.

For more information call or email Betty Wolf, Vice President, Foundation, at 760-773-1888 or [email protected].