Given the volatile stock market, many doctors approaching retirement are looking to safely increase their retirement income and cut their federal and state income taxes now while they’re in the highest tax brackets. One little-known, but highly effective strategy is using a charitable remainder trust (CRT).

You can transfer cash or appreciated property (such as stocks, bonds, and real estate) into a CRT. The income from the trust goes to you (and potentially your spouse) during your lifetime. Since your children may already be taken care of through your will, you may be comfortable leaving the trust principal at death to one or more of your favorite charities.

Recently, we advised a 65-year-old dentist who owned his office building with a fair market value of $1,000,000 and a tax basis of only $400,000. He had decided to sell the building to the buyer of his practice and wished to increase his retirement income, while creating a legacy by benefiting his