Charitable Remainder Trust

A Charitable Remainder Trust allows a donor to transfer assets into a separately managed trust that will provide beneficiaries named by the donor with payments for life or for a period of years. The donor decides the payout rate of the trust in consultation with the trustee he or she selects. The minimum payout is 5%. The trustee has the responsibility to manage the assets of the trust, provide tax statements to the IRS and the beneficiaries, and issue beneficiary payments on a periodic basis. The University currently serves as trustee of many charitable trusts and provides these services to donors and beneficiaries of those trusts. There are two types of Charitable Remainder Trusts: 

Charitable Remainder Unitrust 

This trust pays the donor or other named beneficiaries a fixed percentage of the principal in the trust as it is valued annually. Unitrust payments are taxed to the donor based upon the type of income earned by the trust. Additional gifts can be made to a unitrust at any time. 

Charitable Remainder Annuity Trust 

This trust makes annual payments fixed at a specific percentage of the value of the trust when it is established. Additions to an annuity trust are not permitted.