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Charitable Remainder Unitrust

Another form of charitable giving is a Charitable Remainder Uni-Trust, aka a CRUT. Both CRAT and CRUT are types of charitable shared trust.

How a CRUT works

A CRUT makes annual payments to beneficiaries during the life of the donor, and when they die, the remainder of the trust goes to supporting the Mission. The payment to beneficiaries is calculated as a fixed percentage of the assets reaming in the trust. During the trust’s lifetime, the owner can top up the assets as he/she pleases.

There are various charitable remainder unitrusts, including a standard unitrust, a net income Unitrust, and a Flip Unitrust. The payment to beneficiaries depends on the type of CRUT created.

Advantages of a Charitable Remainder Unitrust

Advantages of CRUT

  • Assets can be added to the entity over time.
  • Highly valued assets can be sold with minimal tax consequences.
  • Provides income stream for many years
  • The donor or beneficiaries can claim tax charitable deductions.

Planning to use a CRUT in your estate plan?

Charitable giving is a fantastic estate planning tool; these charitable gift opportunities allow you to donate to the Mission of San Juan Capistrano, reduce your tax burdens and receive dependable income for life.