George has asked you for advice. He has a stock portfolio worth about $700,000 w

Question

George has asked you for advice. He has a stock portfolio worth about $700,000 with a cost basis of $400,000. He would like to retire and have a steady stream of income from this asset. He has no immediate family. He has heard of Charitable Remainder Annuity Trusts and Charitable Remainder Unitrusts and is wondering if something like that would fit his situation. Research his situation and advise George on his situation. You may make some assumptions, such as taxation options on selling the stocks, etc.

Explanation / Answer

Ans) George has invested all his cash in the stock and it was so risky. Now, George wants steady and stream of income from this asset but the market stock doesn't give steady stream income to any one which is too risky. Now, he has better to sale the stock at market price and tries to deposit in tax free bonds or fixed income deposits then George will get the some steady and stream income from that. George can write Trusts as a nomine then after his dead the trust can take the money. He is doing the fixed deposit then we will get the some tax exemption.

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