What is a Charitable Remainder Unitrust?

A charitable remainder unitrust is a custom designed and individually managed trust to which you transfer cash or other assets that you would like to convert into an income stream. The trust is tax-exempt; therefore, when it sells any appreciated assets, it pays no ordinary income or capital gains tax. Furthermore, you may receive an income tax deduction for a significant portion of your gift.

The trust, which you may control, manages the trust assets and pays you (and your spouse or others) an annual income for life, a term of years, or combination, after which, the trust assets are distributed or held for the benefit of the charitable organization(s) you have selected.

Donor name will transfer assets valued at $1,000,000.00 to the trust. Additionally, an income tax deduction of $446,590.00 will be generated, which may save as much as $139,257 in taxes. The trust will distribute income based on the payout rate of 5%. The income for the first full year will be approximately $60,000. When the trust terminates, the value of the trust, based on the $1,000,000.00 transferred, plus any growth or less any loss in trust value, will be transferred to Charity.