Dr. Samuel W. Askinas, 49, Increases Personal Income And Support
For NYUCD With A Charitable Remainder Trust
Last year Dr. Samuel
W. Askinas, Class of 1949, decided that he wanted to increase his income
by selling a
portion of his stock and reinvesting the proceeds. But he didnt
want to lose a substantial portion of his investment to capital gains
taxes, and he was interested in a mechanism that would benefit NYUCD also.
His financial advisor suggested a charitable remainder trust, an arrangement
that allowed him to transfer selected assets to a trust that will pay
a fixed rate of income to him and his wife for the rest of their lives,
after which NYUCD will receive a portion of the assets remaining in the
trust. When Dr. Askinas set up his trust, he received a substantial immediate
income tax charitable deduction. And when the trust sold the stock there
capital gains taxes, so the entire value of his assets was available within
the trust to earn income for him.
I have always
had extremely warm feelings about NYUCD and I have supported the College
for many years, said Dr. Askinas. I received an excellent
education and I believe that the College is one of the great dental
institutions of the world. So when I started to think about estate planning,
I reflected on how much NYUCD had enriched my life and I selected a meaningful
way to connect with the Colleges future. The charitable remainder
trust is an attractive gift arrangement; it gives my wife and me significant
tax and income advantages, while it also made it possible for us to increase
our gift to NYUCD.
A former executive
dean and professor of restorative dentistry at Tufts University School
of Dental Medicine, and a retired U.S. Air Force colonel, Dr. Askinas
currently chairs the department of prosthodontics at the Nova Southeastern
University School of Dental Medicine.
Can a Charitable Remainder Trust work for you?
Lets assume that George and Amy, ages 77 and 74, want to increase
their income from their stock holdings worth $250,000. The cost basis
of the stock is $50,000. They want an income of 7.3%, or $18,250 annually.
The alternative is simply to sell the stock and reinvest in bonds paying
5.5% annually. The following chart compares the two results.
|Sell and Reinvest
|Capital Gains Tax (20%)
|Net for Investment
|Income Tax Savings
|After Tax Cost