Charitable Remainder Unitrusts
A charitable remainder unitrust is similar to an annuity trust with one significant difference. The difference is in how the income amount is established. With a unitrust, the payout rate is applied to the fair market value of the trust assets determined annually. Each year the unitrust is revalued and you are paid your specific percentage of that year’s valuation.
Charitable remainder unitrusts can be funded with cash, publicly traded securities, and real estate as well as other appreciated assets.
Benefits of Charitable Remainder Unitrusts
- You can make a significant impact on the future of Texas Woman’s University.
- You receive an annual income at a rate chosen by you (the minimum rate by law is 5%).
- You receive an immediate income tax deduction for the value of TWU’s remainder interest (assuming the trust is created during your lifetime).
- You avoid capital gains tax on any long-term appreciated assets you place in the trust.
- You are entitled to charitable gift and estate tax deductions.