Under the Charitable Remainder Unitrust, a fixed percentage of the net fair market value of the trust is paid annually to a non-charitable beneficiary. The percentage cannot be less than 5 percent of the annual value of the trust, nor can it be greater than 50% of the trust value. 

 

Income payable to the non-charitable beneficiary must be for a term of no more than 20 years or for life. If income is payable for life, then the older the non-charitable beneficiary, the greater the deduction. Any payments to a survivor reduce the donor's amount of charitable income tax deduction. The value of the charitable remainder interest must be worth at least 10% of the value of the trust assets.

Charitable Remainder Trust (Definition) | Charitable Remainder Annuity Trust | Charitable Remainder Trust Calculator | Charitable Remainder Trust (Illustration) | Advantages of a Charitable Remainder Trust

 

 

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