What is a Charitable Remainder Unitrust?
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A charitable remainder unitrust pays an income equal to a percentage of the value of the principal; you designate the percentage when you create the trust, and the trustee revalues the principal each year to determine that year’s income. The charitable remainder unitrust is the most flexible form of deferred gifts and can be created to accommodate a wide range of donor and beneficiary needs. Since each trust is separately invested and managed, the trustee can tailor investment strategies to meet the needs of the trust’s beneficiaries. The unitrust can also be useful for gifts of illiquid assets such as closely held stock or real estate. It can also be a valuable retirement planning tool.

You may make additional contributions to a unitrust and the investment strategy may vary with your changing financial needs. For example, if you do not currently require the income, a net income unitrust can invest for growth and at a future date invest for yield. A net income unitrust can also accept illiquid property such as unencumbered real property or tangible personal property. Contributions of cash, marketable securities, and real property generate charitable deductions equal to the present value of Oberlin’s remainder interest.

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