Giving

Remainder Unitrust

The charitable Remainder Unitrust is an irrevocable trust very similar the Annuity Trust. The primary difference is rather than a fixed annual payment the income from the trust is a percentage of the current fair market value of the property transferred, determined annually.

Advantages:

  • Unlike an annuity trusts the donor can add additional assets to the trust over time.
  • Because the annual payment is variable, based on the fair market value of the property, the unitrust provides a hedge against inflation.
  • As an irrevocable gift, a portion of the assets placed in trust is treated as a charitable deduction. The exact amount of the deduction depends on the age of the donor, percentage of payout, and other factors.
  • Assets in a trust bypass probate, and may help avoid estate taxes.
  • Since the assets are not considered part of your estate, they pass directly to the Missouri Southern Foundation insuring your privacy by avoiding public scrutiny as part of the probate process.
  • Your assets are not subject to probate costs.
  • The donor is relieved of managing the investment since the trustee takes this responsibility.

There are many examples of how a charitable remainder unitrust can be used to meet the needs of a donor. In all cases, donors should consult their attorney, accountant, or estate planner when considering gift giving.

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