Real estate is not usually given through gift annuities. Under a basic unitrust, the donor receives one or more yearly payments equaling a fixed percentage of the value of the asset. The value is assessed each year. Under a net-income unitrust, the donor receives only the income earned by the trust, even if the trust earns less than the payout rate. The donor receives a yearly fixed payment equal to at least five percent of the value of the asset at the time the deferred-giving agreement was signed.
Donors escape capital gains taxes by transferring appreciated assets to the trust.
The fact that the trust can produce income for the donor makes this option an appealing way to prepare for retirement.