A trust is a legal agreement that specifies how the assets placed under the trust will be managed. The charitable remainder trust is an attractive method to achieve a variety of goals. The type of remainder trust best suited to you depends on your individual needs. Unitrust The unitrust often is chosen because it is market sensitive. If you have assets that are difficult to value, there may be other gift plans better suited to your situation.
Many benefactors choose the unitrust for gifts of real estate.
If you use real estate to fund the trust, your payments will begin when the property is sold and the trust reinvests the proceeds of the sale in income-producing assets. Because you receive income only after the property is sold, you may elect to receive additional income later to make up for the payments that were not make to you before the property was sold. The trust can be for one or more lifetimes, or for a specified term up to 20 years. If certainty in the annual amount of income is your priority, the annuity trust may be a better option. This trust provides an income that does not fluctuate with the market.