Charitable Remainder Unitrust
A Charitable Remainder Unitrust (CRUT) is an irrevocable tax-exempt trust that provides an income stream to you for a stated term with the remainder transferring to The Ohio University Foundation. A CRUT can be funded with cash, publicly traded securities or other marketable assets such as real property.
Benefits of a charitable remainder unitrust
- Receive income for life, for a term of up to 20 years or life plus a term of up to 20 years
- Avoid capital gains tax on the sale of your appreciated assets
- Receive an immediate charitable income tax deduction for the charitable portion of the trust
- Leave a lasting legacy at OHIO
How a charitable remainder unitrust works
- Transfer cash or assets to fund your charitable remainder unitrust. We recommend a minimum of $100,000 in assets to establish a CRUT.
- You receive an income tax deduction in the year you transfer assets to the trust.
- In the case of a trust funded with appreciated assets, the trustee will then sell the assets tax-free.
- The trust is invested to pay income to you or any other trust beneficiaries you select based on a life, lives, a term of up to 20 years or a life plus a term of up to 20 years.
- The minimum payout rate on a CRUT is 5% and we can work with you to determine what might work best in your situation.
- The fair market value of the CRUT is revalued annually and your income is adjusted accordingly.
- After the term, the remainder of the trust assets are transferred to The Ohio University Foundation for your designated purpose.
If you have any questions about a charitable remainder unitrust, please contact us. We would be happy to assist you and answer any questions you might have.
Charitable remainder unitrust for income. A charitable remainder unitrust pays you income that reflects the value of the trust's assets. Your income has the potential to increase over time as the trust grows in value.
How to select the right unitrust payout. There are several unitrust payout options to meet your needs. The best payout option may depend on the nature of the asset used to fund the trust. We would be happy to work with you and your tax advisor to determine which payout option is best for you.