In the face of declining stock portfolios and rising inflation, the need for cash to meet rising costs is also on the rise. The challenge however is that present investments (even at lower present valuations) will still meet head on with capital gains taxes on their long term growth when you sell (“liquidate”) those investments - to create the cash you may need. The resulting dilemma: sell the stock or securities you need to in order to produce the cash you need (at a lower value, and pay the attributable capital gains tax), or hold the investment and somehow find the cash you need elsewhere.

Such is the conversation we have begun to respond to, as we seek to provide answers to this present dilemma. One answer, maybe the answer, is a Charitable Remainder Unitrust, for the way in which it can efficiently deal with the capital gains tax otherwise attributable to long-term growth assets when they are liquidated, and for how it also provides a hedge against inflation throughout the life of the normal income payments from it.  

Charitable Remainder Unitrusts (or “CRUT’s”) are also often the ideal giving solution to a cherished ministry, like LeTourneau University. While the discussion of a CRUT is often held within the context of an estate and legacy (and overall retirement or survivor income plan), it is also not out of bounds to bring the virtues of a CRUT to this very discussion here. Just as a CRUT can provide tax favored income over an extended period for couples in their later years, so also is it able to produce income anytime in life when cash is locked up in long term investments (even in such a situation as we have at present).

Here at the LeTourneau University Foundation, a separately organized and now strategically self-supported autonomous entity in support of LETU, Charitable Remainder Unitrusts are one of our core competencies. If you are one at present who is facing this very dilemma we describe here, please do not hesitate to reach out to us for more information, or for an illustration of how this could work for you in your unique situation. While we are young in the life of LeTourneau University, we have many years of experience dealing with these very issues on our assembled team. We look forward to the prospect of hearing from you. We can be reached via email at leavealegacy@letufoundation.org or by direct phone to our administrative office at 903-233-3833.