When we hire professionals to help manage our assets and recommend ways to save on taxes, we have an expectation that those professionals have specific expertise in the transactions they are executing. 

A botched transaction with a charitable remainder annuity trust brings unwanted attention from the IRS and unnecessary risk.

After several years of working with her previous advisor, Mary was suddenly not receiving the service she had come to expect. In fact, her previous advisor literally fired her as a client. This came after Mary refused to purchase an annuity late in life that would have tied up the majority of her liquid assets. The advisor, in collaboration with his personal CPA, had already made several missteps in recommending Mary transfer a rental property into a charitable remainder annuity trust and then selling the property to “avoid taxes.” Mary was unfamiliar with charitable remainder annuity trusts, how the distributions worked,  and the tax reporting obligations around these transactions. She was trusting the professionals to make sure the transaction was done correctly. Unfortunately, it wasn’t long before the IRS started requesting tax filings. There are taxable events with various steps of establishing and maintaining a CRAT.

Fortunately, we were able to unwind the entire transaction, clean up the IRS back taxes, and move forward with a sound, long-term, plan.

How ProCore Advisors can help

Here are some of the ways we guide clients in making critical decisions and taking control of your finances:

• We start by educating and helping you understand every strategy we are recommending from start to finish.
• We work to make the process as simple as possible. 
• We work with your attorney and CPA to ensure all of your professionals are working together toward your goals. 
• Restructure your portfolio to help keep you on track for retirement or other goals.
• Review and advise on personal risk management protection for you and your family.