Can I use a Charitable Remainder Trust to remove retained earnings from my corporation without adverse tax consequences?

Instead of selling your stock to a third party and generating an immediate capital gain tax, you can create a Charitable Remainder Trust. After receiving a valuation of your business from a qualified appraiser, you can transfer that amount of the corporation's stock which is equal to the value of the corporation's retained earnings to the trust. The corporation then can purchase or redeem the stock from the Charitable Remainder Trust. The result? The corporation no longer has any retained earnings, and you have those earnings free of corporate or personal capital gain income tax. Your Charitable Remainder Trust will then generate an income for you and any other income beneficiaries you name.