What is a Charitable
Remainder Unitrust?
A Charitable Remainder Unitrust is a giving vehicle that allows you to make contributions to the trust and be eligible for a partial tax deduction. You can name yourself or someone else to receive a potential income stream for life or a term of years, and then designate FINCA International to receive the remainder of the donated assets.
You may be concerned about the high cost of capital gains tax with the sale of an appreciated asset. Perhaps you recently sold property and are looking for a way to save on taxes this year and plan for retirement. A charitable remainder unitrust might offer the solutions you need.
Benefits
Receive income for life for a term of up to 20 years, or for the life of one or more non-charitable beneficiaries
Avoid capital gains on the sale of your appreciated assets
Receive an immediate charitable income tax deduction for the charitable portion of the trust
Establish a future legacy gift to FINCA International
How Does a Charitable
Remainder Unitrust Work?
You transfer cash or assets to fund a charitable remainder unitrust with FINCA as the Trustee. In the case of a trust funded with appreciated assets, the trust will then sell the assets tax-free.
The trust is then invested to pay income to you or any other trust beneficiaries you select based on a life/lives, or for a term up to 20 years. You receive an income tax deduction in the year you transfer assets to the trust. FINCA will benefit from what remains in the trust after all the trust payments have been made.
If you have any questions about setting up a charitable remainder unitrust, we would be happy to assist.
Additional Information
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.
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.