Does a Charitable Remainder Trust work best when funded with appreciated assets?
Usually. If you transfer an appreciated asset into an irrevocable trust, you will remove it from your estate so, when you die, no estate taxes will be due on it. The trustee then sells the asset at full market value, paying no capital gains tax, and reinvests the proceeds in income-producing assets. Since no capital gains taxes are paid, there is more principal available for re-investment. For the rest of your life, the trust pays you an income. When you die, the remaining trust assets go to the charity (ies) you have chosen.
