Charitable Remainder Unitrust

Charitable Remainder Unitrust

In this case, the donor transfers cash, real estate, or securities to an irrevocable trust that provides yearly, fluctuating income to the donor or other beneficiaries for a term of year or for life, based on a fixed percentage of the trust principal. Trust assets are reviewed annually, allowing potential growth in income to the beneficiaries. Additional contributions can be made to the trust. Upon the death of the final beneficiary, the charity receives the principal and distributes it according to the donor's wishes. An income tax deduction is allowed for an amount equal to the present value of the foundation's remainder interest in the trust.