A charitable remainder unitrust (CRUT) is an irrevocable trust which pays a fixed dollar percentage of the value of its holdings each year to a beneficiary such as the donor of the trust asstets, his or her spouse, child, etc.

After the death of the income beneficiaries or at the end of set number of years (no more than 20), whatever assets are distributed to the charities named in the trust.

Assets must be revealed each year in order to determine the payment amount. Additional contributions can be made to the trust in later years if desired.

The CRUT may be drafted to pay out less than the established percentage if the trust income earned during the year is less than the required payout percentage. This shortage can be made up for in later years when the trust earns more than the required payout percentage.

• Income Tax Consequences
• Gift Tax Consequences
• Estate Tax Consequences
• Almost Everyone Benefits

This document was last modified on July 26, 1999

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