paidsurveys

The Best Kept Secrets of a Charitable Remainder Unitrust by Hank Brock A Charitable Remainder Unitrust (CRUT) was created to provide an income to a non-charitable beneficiary while simultaneously transferring the remainder interest to a qualified charity. The donor would irreversibly transfer securities or property to a trustee. The trustee would then pay the donor (or other income beneficiary) income from the property for life. The donor could also provide that if he or she predeceased a spouse, the spouse in turn would receive income from the donated property for life. The donor would receive payments based on a fixed percentage of the fair market value of the assets placed in trust. The assets would be revalued each year. Additional Contributions The CRUT may receive assets in later years, unlike the Charitable Remainder Annuity Trust (CRAT) which does not. The CRUT also varies from a CRAT since the stream paid out by the CRUT trust must be a minimum of 5% of the annual reappraised value of the corpus. Accordingly, the CRAT disburses a fixed sum of income that never differs in amount, while the CRUT, depending on the reappraised value of the corpus and accumulated income, may issue greater or lesser amounts of income. Appreciation Each year the size of the payment to the non-charitable beneficiary can increase if the rate of the corpus and income continues to appreciate. Because of this, the CRUT is a valuable tool to fight inflation. If, over a period of time, the value of the assets continues to depreciate, the CRUT may in the end pay less income to the non-charitable beneficiary than was originally planned. If a grantor requests to guarantee a yearly increase in the value of the income payment to the non-charitable beneficiary, the grantor should finance the corpus of such a trust with assets that pay a guaranteed rate of return. - 22946 Hank Brock is president of Brock and Associates, LLC, a firm specializing in financial planning, retirement, estate, and tax planning. Visit him online for further information on charitable remainder unitrusts and other financial planning topics. --------------------------------------------------- You are receiving this because you signed up for it on 2009-03-20 from IP 75.162.79.32 To fine-tune your selection of which articles to receive, just login here: http://www.uniquearticlewizard.com/bloggers/ using your username: courtneyrogers1988 To unsubscribe please use the following link: http://www.uniquearticlewizard.com/unsubscribe.php?mail=support88debra@blogr.com&code=961b384d7e7eed2852f41dc0eea51679 ---------------------------------------------------