Charitable Remainder Unitrust (CRUT)
Donors can give through a CRUT by transferring cash or a capital asset, including real estate, to a charitable remainder unitrust. This is an irrevocable gift. The trust then pays the donor, or other people the donor designates, a fluctuating income, based on a percentage of the trust’s value, for life or a specified term. Unlike a CRAT, donors can make additional contributions to a CRUT. At the end of the term, the principal remaining in the trust is passed on to the Foundation. A CRUT is most appropriate for donors age 50 and older who can contribute at least $100,000 over the life of the trust in cash or capital assets. The tax benefits include income tax deductions, capital gains tax avoidance, gift tax deductions, and estate tax deductions.
