Charitable Remainder Unitrust
A charitable remainder unitrust pays you income that reflects the value of the trust's assets. With a unitrust your income has the potential to increase over time as the trust grows in value. Payments will vary based on the performance of the investments held in the trust and are based on a rate agreed upon when the trust is created
There are several trust payout options to meet your needs. (The statutory minimum of 5 percent is our most commonly used rate.) 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.
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 on the sale of your appreciated assets.
- Receive an immediate charitable income tax deduction for the charitable portion of the trust.
- You can add to the trust at any time.
- Your future gift to IU Health Foundation will make a meaningful impact upon the quality of healthcare within the state of Indiana.
How a charitable remainder unitrust works
- You transfer cash or assets to fund a charitable remainder unitrust.
- In the case of a trust funded with appreciated assets, the trust 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.
- You receive an income tax deduction in the year you transfer assets to the trust.
- IU Health benefits from what remains in the trust after all the trust payments have been made.
Contact us
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.
