LAW OFFICES OF

Boyd & Boyd, P.C.

CAPITAL GAINS AVOIDANCE TRUST · PLAN BEFORE THE SALE.

Explore whether a Charitable Remainder Trust can connect your appreciated property with scheduled income and a charitable legacy. Understand the tax timing and family tradeoffs before you commit.

Boyd Boyd, P.C. uses this name for a Charitable Remainder Trust strategy involving appreciated assets. It brings together a proposed sale, scheduled beneficiary payments, and a charitable remainder.

The planning question is whether its income, tax, and charitable features fit your goals. Begin with your asset and your family’s needs, then compare the available choices.

An appreciated asset may represent years of saving, investment, or work. Selling it raises more than a tax question. You may need income, greater diversification, a charitable legacy, and enough other property to support your family.

A useful comparison puts those goals on the same page. Review the outright-sale option and the proposed trust using realistic assumptions about taxes, payments, fees, and the inheritance you want to preserve.

Choose the question on your mind. The answer and next steps below will adjust to match.

YOUR QUESTION, ANSWERED

Turn an Appreciated Asset Into a Planned Income Stream.

The firm uses this name for a Charitable Remainder Trust strategy. You contribute appreciated property, the trust may sell and reinvest it, and designated beneficiaries receive scheduled payments before the remainder passes to charity.

A qualifying trust generally pays no federal income tax on its sale. Taxable gain can reach beneficiaries through later payments. The strategy requires a genuine charitable commitment.

YOUR FAMILY’S FUTURE

For a family considering a sale, this can create a way to discuss income needs, investment concentration, and the causes you want to support in one coordinated plan.

THE DETAIL THAT MATTERS

Compare the proposed trust with an outright sale using the same asset value, basis, expenses, investment assumptions, and family goals. Tax savings should be evaluated alongside the property committed to charity.

YOUR NEXT DECISION

Discuss your appreciated asset, income needs, and charitable goals before deciding whether a trust belongs in your plan.

YOUR QUESTION, ANSWERED

Understand When—and to Whom—the Tax Applies.

No. Beneficiary payments carry out ordinary income first, then capital gains, followed by other income and finally principal under the federal ordering rules.

Spreading payments over time may defer gain recognition and sometimes reduce total tax, but the outcome depends on the trust’s income, payout pattern, your tax situation, and applicable law.

YOUR FAMILY’S FUTURE

Your spending plan should use the amount you expect to keep after taxes and costs. A larger investment balance in the trust is not the same as unrestricted cash in your hands.

THE DETAIL THAT MATTERS

Ask for projections that show both trust-level activity and beneficiary taxes. Federal and state treatment, investment returns, and future distributions all belong in the comparison.

YOUR NEXT DECISION

Review the proposed sale and payment plan so the expected tax timing and practical tradeoffs can be evaluated.

YOUR QUESTION, ANSWERED

Start Before a Sale Becomes Practically Certain.

Appreciated securities or real estate may be candidates, but suitability depends on the asset and transaction. Review debt, restrictions, business interests, and any ongoing sale discussions before transferring property.

A transfer shortly before closing does not automatically shift the gain. Assignment-of-income principles can tax the donor when the right to sale income has already ripened, even before cash is received.

YOUR FAMILY’S FUTURE

Early review gives your family time to compare options before the transaction narrows your choices.

THE DETAIL THAT MATTERS

Bring acquisition and basis records, title documents, loans, ownership agreements, offers, letters of intent, and proposed sale contracts. Disclose the full transaction history, including informal negotiations.

YOUR NEXT DECISION

Discuss what you own and how far the sale has progressed so available planning choices can be evaluated.

YOUR QUESTION, ANSWERED

Choose a Payment Design That Fits Your Needs.

A Charitable Remainder Annuity Trust generally pays a fixed dollar amount. A Charitable Remainder Unitrust generally pays a fixed percentage of annually valued assets, so the dollar payment can change.

The design must satisfy statutory payout and charitable-remainder tests. Your age, payment term, and selected rate affect which arrangements qualify.

YOUR FAMILY’S FUTURE

Consider how predictable your household expenses are and how a changing payment would affect them. Payment design should reflect your needs and tolerance for investment risk.

THE DETAIL THAT MATTERS

A payout rate is not an investment return or a guarantee that assets will last. Model fees, taxes, market changes, and the proposed term before choosing the structure.

YOUR NEXT DECISION

Discuss who should receive payments, for how long, and how much flexibility your family needs.

YOUR QUESTION, ANSWERED

Value the Charitable Interest—not the Entire Asset.

A qualifying contribution may produce a partial charitable deduction based on the present value of the remainder for charity. It is not automatically a deduction for everything transferred.

Valuation, substantiation, income limits, and applicable deduction rules matter. Noncash property may require a qualified appraisal and Form 8283, with exceptions such as certain publicly traded securities.

YOUR FAMILY’S FUTURE

A deduction can be part of the analysis, but it should support a plan you would be comfortable carrying out. It does not replace the need to plan for income and inheritance.

THE DETAIL THAT MATTERS

Have the charitable-interest calculation and documentation requirements reviewed before the gift. Use rules for the actual contribution year and distinguish a deduction from a dollar-for-dollar tax credit.

YOUR NEXT DECISION

Discuss the proposed gift, asset valuation, and your tax circumstances with coordinated legal and tax review.

YOUR QUESTION, ANSWERED

The Charitable Remainder Is a Real Part of the Plan.

After the beneficiary payment period, the remaining trust property goes to qualified charity. The payment term can be qualifying lifetimes or a term of up to 20 years.

This is an irrevocable arrangement, not a fund you can freely take back. Property committed to the charitable remainder will not simply pass to your children as an ordinary inheritance.

YOUR FAMILY’S FUTURE

You can support charitable causes while providing scheduled payments, but your family should understand which assets remain available for other goals.

THE DETAIL THAT MATTERS

Compare the charitable commitment with the rest of your estate plan. Identify what your spouse or children would receive from other assets and whether that matches your intentions.

YOUR NEXT DECISION

Discuss the charitable remainder alongside the assets and protections you want to leave for your family.

YOUR QUESTION, ANSWERED

Plan for the Work After the Trust Is Created.

The trustee manages investments, makes required payments, maintains records, and arranges tax reporting. Charitable Remainder Trusts generally file Form 5227 annually, with beneficiary payment information reported on Schedule K-1.

Legal preparation, valuations, investment management, trustee services, and tax preparation may create ongoing costs. Review the proposed responsibilities and fee arrangements before deciding.

YOUR FAMILY’S FUTURE

A capable trustee and coordinated advisers can help your family understand the payments, reporting, and continuing responsibilities.

THE DETAIL THAT MATTERS

Ask who will serve, how investment and distribution decisions will be made, and which services are included. Professional trustee fees at Boyd Boyd, P.C. are based on trust size; other costs require separate review.

YOUR NEXT DECISION

Discuss the trustee role, reporting responsibilities, and expected services so the full arrangement can be assessed.

IN A REVIEWER’S OWN WORDS

★★★★★ 5-Star Google Review

“Everyone was extremely helpful during the entire process and we feel confident that we have a sensible and comprehensive estate plan.”

— Pamela Gordon

Review excerpts reflect individual experiences and do not guarantee an outcome for another family.

F. Keats Boyd III and Whitney N. Tashjian help families think through important Estate Planning and Wealth Protection Planning decisions. At Boyd Boyd, P.C., the conversation begins with what you want to protect and what you want the next generation to understand.

This Charitable Remainder Trust strategy combines scheduled beneficiary payments with a remainder for charity. Sale-level tax treatment and beneficiary taxes are separate.

Payments can carry taxable income and capital gains to beneficiaries. Deferral may help, but the trust does not promise permanently tax-free proceeds.

Seek review before negotiations progress. Asset characteristics and an already-developed sale can affect whether the intended tax treatment is available.

An annuity trust generally pays a fixed amount; a unitrust generally pays a percentage of its annually valued assets. Qualification must be tested.

A possible deduction reflects the charitable remainder’s value and applicable limits. Valuation and required documentation must be reviewed.

The remaining property goes to charity after the payment term. Review the irrevocable commitment and your children’s inheritance separately.

Administration includes investments, payments, records, and annual tax reporting. Review setup and ongoing costs before proceeding.

Updated October 4, 2026. Qualification, tax treatment, deductions, and administration depend on the arrangement, transaction, and applicable law. IRS nonprecedential advice illustrates issues and is not authority for a particular taxpayer.

Boyd Boyd, P.C. assists families nationwide. Families outside Massachusetts may come to our office to sign, or we may work with co-counsel licensed in their home state. The property, applicable law, and proposed role determine how the work should be structured.

YOUR FREE ESTATE PLANNING STRATEGY SESSION

Discuss your appreciated asset, income needs, and charitable goals before deciding whether a trust belongs in your plan.

Bring an overview of the asset, its basis and value, any sale discussions, and your income and inheritance goals. Boyd Boyd, P.C. can discuss whether further legal and tax analysis is appropriate.

The free session is an initial planning conversation. Trust preparation, financial projections, tax advice, implementation, and administration are separately scoped and priced.

Call 508-444-9688 to request your session.

1555 Iyannough Road, Unit 1BW • Hyannis, Massachusetts 02601

(508) 444-9688 • plan@boydandboydpc.com

© 2026 Boyd Boyd, P.C.

General information only. Legal advice depends on your circumstances and an attorney-client engagement.