Charitable Remainder Unit Trust (CRUT)
A Unitrust, also called a Charitable Remainder Unitrust
or CRUT, requires that a fixed percentage (minimum 5%) of
the annual value of trust assets be paid to the income beneficiary.
For example, a CRUT with a value of $2,000,000 and a 5% payout
would pay $100,000 to the income beneficiary in that year.
If the investment performance for that year was 10% and the
value of the trust on the valuation date was $2,200,000 the
income beneficiary would receive $110,000 in that year. Another
benefit of the Charitable Remainder Unitrust is that it will
allow for additional contributions. The Unitrust will generally
produce higher amounts of income but a smaller tax deduction.
A Unitrust is good for someone looking for a specific percentage
return. This can be used to keep up with inflation if the
trust value continues to grow over the years.
Click here for additional FREE information
on a Unitrust - CRUT.
We have also put together a hypothetical case study that
illustrates a Charitable Remainder Unitrust in use. Click
here to view the study as an adobe .pdf file.
Harding Financial Services, LLC
The information contained on this site is for educational
purposes only, it is not intended to be professional tax or
legal advise; consult a tax advisor about your specific situation.