Realtors can be a Great Source of Planned Gifts

Realtors can be a Great Source of Planned Gifts

Article posted in on 15 December 2011| comments
audience: Charitable Trust Administrators, Inc. | last updated: 15 December 2011

Both commerical and high-end residentail realtors can be an excellent source of leads for planned gifts.  Why, you may ask?  In this article, Chuck McLucas of Charitable Trust Administrators, Inc discusses several reasons to educate and cultivate these financial professionals.

By Chuck McLucas

Both commerical and high-end residentail realtors can be an excellent source of leads for planned gifts. Why, you may ask? There are several reasons to educate and cultivate these financial professionals.

First and foremost, one major reason to develop a professional working relationship with the realtors in your area is that most of the new charitable trusts and large gift annuities established in the past ten years were funded with real estate assets. It has been the experience of Charitable Trust Administrators, Inc. (CTAI) that over eighty-percent of new charitable trusts set up in recent years were funded with real estate assets. Because of this fact, it is incumbent upon both the charities and financial professionals in the gift planning arena to maintain and develop relationships with the real estate professionals in their communities.

The second reason to consider working with real estate professionals is that they may not have received education in the field of gift planning that many CPA’s, attorneys, investment advisors and financial planners have received. Accordingly, it is incumbent upon all of us to assist in educating fellow financial professionals as to the wonderful tools available in gift planning. This can be accomplished by holding seminars at the charity’s office or at the monthly educational meetings that most realty offices hold. CTAI’s staff is open and available to assist in this effort. Please review, on our website, the seminar materials available as well as a checklist and introduction letters to send out announcing these meetings. We have conducted several seminars titled “1031 Ex-change vs. CRT: Which is the Best Option for Your Clients?” As we look back on these seminars we can usually point to a new CRT being established by one of the attendees within six months of the training.

A third reason to educate the real estate professional is to assist them in developing an addi- tional income source for their families and the community they live in. Most realtors get approximately 60% of their annual income from getting the listing on a piece of property. By holding an educational seminar you can explain how they can visit a local title company and obtain a listing of all the properties within a 10 mile radius that has been held in the same family for more than 25 years and is debt-free. The realtor would then have a potential list of clients that might benefit from the sale of their property by using the valuable tool of a Chari- table Remainder Unitrust (CRT). Another way to assist the realtor in increasing his/her current income is to review the existing listings they have to see if some of them are highly appreciated and then go to the seller and suggest lowering the price 15-20% for a much faster sale. That way they would have the same after-tax benefit of monthly income as they might have experienced without the use of the CRT.

The final reason you might want to contact the realtors in your area is that the “baby-boomer generation” is alive and well and about to transfer over the largest amount of wealth in history within the next 10-20 years. These real-estate transactions are going to happen as individuals need more retirement income, are tired of managing their real estate and do not want to do yet-again another 1031 Exchange. The sooner we educate the real estate community on the benefits of using CRT’s, thus by-passing capital gains tax, the sooner a great deal of money will flow through to our deserving local charities instead of the government.What is the best way to educate the real estate professional? Probably the quickest and most ef- ficient is to use an educational seminar. CTAI has developed a “Media Kit” which can assist you in this effort. This kit includes introductory letters, checklists, flyers, and is available on our website. We also have a DVD presentation about the use of planned gifts in the sale of real estate. You can find additional material available out in the marketplace from other vendors who offer planned giving information.

So, please get the word out to all your real estate professionals and you will surely make some great new friends, in addition to helping build endowments for worthy charities in your local area and beyond. We have a brochure called “The Capital Gains Bypass Trust” that we can provide for the nominal fee of 50 cents each. The front page of this brochure can be modified to list your charity or professional office, in place of CTAI, if that is of interest to you. These brochures are also available on our website.


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Charitable Trust Administrators, Inc.
17501 E. 17th Street Suite 100
Tustin, CA 92780
United States
Phone: (714) 508-9100
Fax: (714) 508-9102



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