A charitable remainder unitrust provides a way for a donor to obtain an income stream for life.
How It Works:
- The trust agreement provides an annual payment equal to a fixed percentage of the contributed amount, for life or a term of years, which payment is revalued annually and fluctuates based on the value of the trust’s assets.
- If the trust assets grow, the increasing value will result in larger annual payments to the donor.
- At the end of the term or the donor’s death, the trust terminates and any residual assets are conveyed to the society.
- The donor receives a stream of income for life.
- A portion of the initial contribution to the trust is tax-deductible.
- If the donor makes the contribution in appreciated securities, taxes are typically avoided.
- The contributed assets are removed from the donor’s estate and may reduce estate taxes.
- There are various provisions which can make up a charitable remainder trust.
- Contact Society Treasurer Paul R. Judy directly or through counsel to establish a trust agreement meeting the objectives and needs of the donor and benefiting the Society.
Banner photo by Elliot Mandel