Charitable Remainder Unitrust

Charitable Remainder Unitrust pays income for life for up to 2 people. When you establish a charitable remainder unitrust, you transfer cash or property to the trust. You then decide what percentage of the fair market value of the trust assets you wish to receive as income. For example, John Jasper donates $100,000 in cash to a unitrust and wants to receive an income of 8% of the annual valuation of the unitrust. The first year income payment will be $8,000. If the value of the trust increases, so will the income payment. On the other hand, if the value of the unitrust decreases, John Jasper will still receive his fixed 8% income but the payment will be less.

Upon the death of both, all principal and undistributed income is transferred to the College.
Benefits of a unitrust:

• Increased current income
• A generous income tax charitable deduction that can be carried forward for five years
• Bypass of the penalty capital gains tax on the sale of appreciated assets
• Estate tax and probate cost savings