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To: Dave Budde who wrote (1894)	11/27/1997 3:16:00 PM
From: gookmd	Read Replies (1) \| Respond to of 8218

Hi Dave, thanks for your comments regarding the CRT. I've read that the CRT annuity set up has some drawbacks such as allowing only a one time gift to the trust vs the net income set-up that allows an unlimited number of gifts to the trust. the law also allows a 20 year extension after your death to name your kids as trustee so that they can continue to draw income from the trust for 20 years after you're gone. my only concern is that is that income paid to you from the trust is taxed as income. in california, both state and federal income tax can take a bite of up to 35-40% off this income (assuming you're in a high tax bracket). if this is the case, then doesn't it offset the benefits of avoiding capital gains?