Do you have a large amount of your net worth in one or two highly appreciated stocks? Holding on to them is risky, because those stocks may fall, but selling them would trigger a large tax bill.
As an alternative, donate the appreciated shares to a charitable remainder trust (CRT). Such a contribution won’t generate a tax bill.
Then the CRT can sell the shares, tax-free, and reinvest the full amount in a diversified portfolio. You’ll be able to deduct a portion of the face value of the shares you donate as a charitable contribution. Moreover, you (or perhaps you and your spouse) can receive lifetime income from the trust’s diversified portfolio. At your death, the assets remaining in the trust fund will go to a charity or several charities of your choice.
