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Charitable Remainder Trusts

Charitable Remainder Unitrust

A charitable remainder unitrust (known simply as a unitrust) is an irrevocable trust that allows you to make a gift while at the same time receiving a fixed percentage (which must be at least 5% and not more than 50%) of the net fair market value of its assets, valued annually,  paid to you, or to you and additional people, for life. At the end of life, the remainder of the trust is distributed to charity.

How is a Unitrust different from a Charitable Gift Annuity?

  • A Unitrust is more flexible, allowing you to select the income percentage and to make additional contributions to the unitrust.
  • Charitable Gift Annuity payments never change during the lifetime of the income beneficiaries; unitrust payments are based on the market value of the trust each year, so the payments can go up or down.
  • A Unitrust is a more complicated planned giving vehicle; therefore, it has a higher minimum gift amount at The Foundation. The minimum gift to create a unitrust is $50,000.00; the minimum gift to create a charitable gift annuity is $5,000.00.

What are the potential benefits of a Unitrust?

  • It provides you with a stream of income while at the same time, allowing you to make a planned giving arrangement to benefit the ministry of your choice.
  • It can have substantial tax benefits .
  • A unitrust can enable you to make a gift to ministry that is larger than you might have anticipated because the unitrust provides income for life.  
  • A unitrust can be created using appreciated securities that were not producing income for you.

Charitable Remainder Annuity Trust

A charitable remainder annuity trust, like a unitrust,  is an irrevocable trust that allows you to make a gift.  Payments to you or to you and additional people, are a fixed amount establsihed at the time of the gift.  At the end of life, the remainder of the trust is distributed to charity.

Contact The Foundation to learn more about charitable remainder trusts and to receive a proposal specific to your circumstances.

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