Creative Ways to Give

Charitable Remainder UniTrust

In establishing a charitable remainder unitrust, the donor receives a variable income from the gift for the rest of his or her life. The income to the donor is based on a specified percent of the trust principal, revalued each year, reflecting an increase and/or decrease in the value of the trust’s assets. More than one person may receive income.

The trust assets become the property of the charitable organization upon the donor’s death, or in a pre-established time period. Additional contributions can be made to the trust. Income tax deductions for the donor are based on present value of remainder interest going to the charitable organization.

A unitrust has the same benefits of an annuity trust except the payout is a fixed percentage of the changing value of the trust’s assets. Additional contributions are allowed to a unitrust. Since the amount paid varies with the value of the trust assets, a remainder unitrust is a good hedge against inflation.

Click here for a Charitable Remainder UniTrust calculator.