Charitable Remainder Unitrust
A Charitable Remainder Unitrust allows you to make charitable deductions but still maintain an income stream.
WHAT IT IS
Charitable Remainder Unitrusts let you generate income for Beneficiaries and donate to charities.
Charitable Remainder Unitrusts (CRUTs) can be beneficial in certain instances. They’re a tax-exempt, Irrevocable Trust (meaning they cannot be changed), set up with the intention of reducing taxable income while supporting a charity at the same time.
CRTs allow for income to be disbursed to Beneficiaries for a pre-designated time period. At the end of that timeframe, the remaining Trust balance is then donated to a charity of the Grantor’s (the Trust creator’s) choice. One big benefit to the CRT is the fact that you can continue to make contributions to it, growing the value, even after it’s first been funded.
WHO SHOULD HAVE
Who could have a CRUT?
A Charitable Remainder Unitrust is not for everyone. It may or may not work for you, depending on your long term goals and how much you have to put towards funding this unique estate planning vehicle. Typically, they can be great if you:
Need an income stream (either for yourself or for another person in your life)
Want an immediate charitable deduction set up
Are comfortable with market fluctuation - income distributions are based on a fixed percentage of market value, which can (and likely will) change over time
CRUT Benefits
Even though they’re not the right choice for everybody or every circumstance, there are some major benefits to having a Charitable Remainder Unitrust.
Tax Deductions
CRUTs allow you to take a partial income tax deduction when the Trust is first funded. The amount allowed is calculated on the expected remaining distribution that’ll go to the charitable beneficiary you name.Tax Exempt
If you’re looking for asset diversification, a CRUT might be exactly what you’ve been searching for. With Charitable Remainder Unitrusts, the actual investment income is exempt from tax - but keep in mind that the beneficiary who receives income will pay taxes on what they earn.Variety of Asset Options
A variety of assets can be used to fund your CRUT. You can use everything from real estate, to cash, to publicly traded securities, and more.
HOW IT WORKS
Create a Legally Valid Estate Plan in 3 Steps
- 1
Create your estate plan
Creating a will or trust through our platform is easy, and for your first time, we’ll ship your documents to you for free. Once you have your plan, make sure to get them signed, witnessed, and notarized to help ensure your plan is legally valid.
- 2
Schedule your signing ceremony.
Finding a notary, gathering your witnesses, coordinating your appointment—it can be a hassle. To make matters worse, not all notaries will notarize estate planning documents. We make this step much easier through our notary partners. Click here to log in to your Trust & Will account and view your notary options.
- 3
Sign, witness, and notarize.
Properly sign your documents in the presence of your witnesses and notary. After your witnesses also sign, the notary will provide their signature and seal. Then, safely store your documents for safekeeping. No need to mail your documents back to us.
The most trusted name in online estate planning.
Don't just take our word for it. Hear from our valued members about how creating an Estate Plan made a difference in their lives. Read testimonials here and on Trustpilot.
Your dedicated support team.
Questions about your plan? Don’t rely on googling or guesswork - your support team is on the case. Even if we’re not in-office, we always respond as soon as possible. We’re here to make the process easy.
We’re available:
• Monday-Friday 7am-5pm PT
Get started today.
Your documents will be shipped straight to your door, for free.
Get started today.
Your documents will be shipped straight to your door, for free.
