Question:
Dear Joe, Big Al & Andi, we love your podcast! I have a question about Charitable Reminder Trusts. I currently have 4 million dollars in my 401k and 5 million dollars in my regular brokerage accounts. I am 64 years older and my wife is 58 years old. I plan to work another 5 years. I will start collecting social security when I am 70 and at that time my wife will start collecting her spousal benefit. Our combined social security at that time will be a combined $60,000/year. So, we can live off our brokerage accounts if we need to. Our yearly expenses will be approximately $100k at that time. I am concerned about the taxes that my 2 children will have to pay on the inherited 401k which they will have to withdraw within 10 years. Do you think a CRT would solve this problem? Is there any taxes associated with a CRT after my wife and I pass away besides the taxes on income that my kids will pay on income distributed out from the CRT? Is there a tax on a CRT trust on distributions to it from from my 401k/IRA after our death? Thanks, George from NY

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