A charitable remainder trust — in the form of either a charitable remainder unitrust or a charitable remainder annuity trust — is a charitable giving plan that creates a lifetime income stream for you and your designated beneficiaries, while making a generous gift to The Up Center from the remainder of the donated assets. The payments you received may continue for the lifetimes of the beneficiaries you name, a fixed term of not more than 20 years, or a combination of the two.
With a charitable remainder unitrust (CRUT), your beneficiaries receive a fixed percentage of the unitrust’s current value, as revalued annually, and additional contributions can be made into the fund can be made; whereas with a charitable remainder annuity trust (CRAT), your beneficiaries receive a fixed dollar amount each year, and additional contributions on top of your initial gift are not allowed. For both, no tax is payable by the trust at the time investment gains are realized, either when funding the trust or after, making it possible to enjoy increased income over time based on tax-free growth within the trust.
