Do you recall the late 1990s; the Denver Broncos won back-to-back Super Bowls in '98 and '99, the ultra-casual grunge look was in and not to forget the surge in value of tech stocks. A couple weeks ago, my 16 year old daughter came across some old photos of our family in Bronco Super Bowl attire as well as me in grunge attire. She told me she hopes I never dress like that again. I told her you never know what trends will make a comeback.
Certain clothing trends won't make a comeback for me. However, I would love to see the Broncos make a comeback and win the Super Bowl this year. In addition, the stock market and housing market have definitely made a welcome comeback from the 2008 financial crisis.
With that being said, the Advanced Marketing Group has been receiving an increase in the number of calls from financial advisors regarding Charitable Remainder Trusts (CRTs). As a result, we have reached out to a couple of CRT administrators and confirmed they have also seen a big increase in the interest in CRTs this year. Why? Some of the most common factors why CRTs may be making a comeback include:
Many financial advisors think CRTs are large cases and primarily only for the wealthy. This is not necessarily the case. As of 2012, an IRS statistic illustrates that 71% of existing CRTs are trusts with under $500,000 in assets. Source: http://www.irs.gov/file_source/pub/irs-soi/12eo04sit.xls
This grid illustrates how a CRT works for your clients, who are commonly referred to as donor(s).
So, with the stock market and the real estate making a comeback, now may be the time to discuss establishing a CRT with clients who are charitably inclined, interested in receiving a tax deduction, and seeking income.
If you have any additional questions, please feel free to contact Retirement Strategies Group at (800)722-2333, ext. 3939, or e-mail us at RSG@PacificLife.com.
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