A unitrust, often called a charitable remainder unitrust, is an irrevocable trust that provides and income to the trustees and their beneficiaries throughout their lifetime. Different that an annuity and unitrust pays based at a variable rate for a designated number of years, for the remainder of the trustees’ lives or that of their beneficiaries. At the end of the trust, the charity receives the remainder of the assets.

Trustees manage the assets of a unitrust and receive income based on how the assets perform. A charitable remainder trust or unitrust often funds a nonprofit organization and is run or managed by the trustee and a board of directors. A unitrust offers many tax benefits to both the trustees and nonprofits for which they provide funding. Use a unitrust to:

1. Receive certain tax benefits only available through a unitrust.

2. Maintain a variable stream of income for the lifetime of the trustees.

3. Provide for a charity or set up a nonprofit organization to benefit a particular cause.

Action Steps
The best contacts and resources to help you get it done

Find unitrust information from a unitrust expert

Because each state has its own rules and laws pertaining to charitable remainder unitrusts, it's important to get the best unitrust advice before deciding this type of trust is right for you. Unitrusts are complex tools of estate planning and subject to both state laws and the IRS tax code.

I recommend: Visit Attorneypages.com, click on "Wills and Trusts" or key in your zip code to find trust experts near you. Also try PersonalLawyers.com and use your ZIP code to find state-by-state listings of lawyers in your area who practice in the area of trust and estates.

Create unitrust documents with online tools and resources

Because unitrusts are so complex, only qualified estate planners use online tools and forms. Other types of do it yourself trusts are a great resource when time is an issue and a trip to the attorneys office isn't possible, but a unitrust requires more multilevel planning by a professional.

I recommend: LexisNexis and FormsPass.com have online forms available for law firms and estate planners creating a unitrust.

Work with trust and estate attorneys for unitrust management

A unitrust offers tax benefits and income potential not available in any other type of trust. However, these types of trusts are normally part of extremely complex estate planning. Use trusted experts in unitrust work for ongoing trust management.

I recommend: Cozen O'Connor and Davis Polk & Wardwell are international law firms with attorneys specializing in trusts, estate planning and taxation law.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  A unitrust offers many valuable long-term benefits such as variable returns, reinvestment of trust assets, growth of trust assets and the trustee can be the donor.