Charitable trusts can be designed to provide variable or
fixed income payments.
A Charitable Remainder Unitrust provides
variable income based on a percentage of trust principal.
As the value of the trust principal varies, the payout will
vary as well.
A Charitable Remainder Annuity Trust provides
fixed income based on a percentage of the initial trust assets.
Over time, regardless of the performance of the trust assets,
the donor receives that same fixed amount.
Charitable trusts offer donors several tax and income benefits.
With a trust, a donor can:
Provide income to oneself or another for a term of years
(not more than 20) or for life;
Turn low-yield assets into a higher-yield income vehicle;
Receive favorable capital gains treatment on highly appreciated
assets held long-term;
Have assets managed professionally at no cost to the
donor, and enjoy the possibility of increased income as
trust assets appreciate over time;
Receive a charitable tax deduction in the year of the
gift.
