Testamentary Charitable Remainder Unitrust
Does your IRA reflect recent, significant tax law changes? Were you planning on leaving your IRA to your children and other heirs? The recently enacted SECURE Act has dramatically changed the tax law rules, substantially increasing the income taxes paid by your children or others on inherited IRAs. Were you planning to utilize a "stretch IRA plan to minimize the impact of taxes on your estate?" Need a solution? The Testamentary Charitable Remainder Unitrust is an excellent plan to replace your old stretch IRA plan.
WHAT IS A TESTAMENTARY CHARITABLE REMAINDER UNITRUST?
A testamentary charitable remainder unitrust is a tax-exempt trust designed to make income payments to your heirs over their lifetimes or for a term of up to 20 years. At the end of the trust, the remaining principal is distributed to support a charity like ours. The trust is sometimes called a "give it twice" trust because it enables you to give the gift of income to your heirs and leave a potentially comparable gift to support our cause.
HOW DOES THE TRUST WORK?
You can create an unfunded or minimally funded charitable remainder unitrust today or direct that one be created and funded with your IRA when you pass away. You have the ability to designate the trust beneficiaries, payout rate and term (lifetime or up to 20 years). Make sure to update your IRA beneficiary designation to designate the trust as the beneficiary of your IRA. Upon your passing, the trust will receive the IRA distribution and then begin to make payments to your heirs.
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information. Click below to download this complimentary PDF.