In the preceding story, the Rice's used a charitable remainder unitrust to fund a scholarship for music majors.
Many people are unfamiliar with trusts and what they are used for.
Different trusts can be used for different purposes, but they are all advantageous to the donor. A trust is a legal document written by a lawyer where the actual document can range from one page in length to hundreds of pages. Highly appreciated assets producing little or no income can be placed in the charitable trust, sold, and reinvested in high-yielding assets producing greater income without incurring a capital gains tax of 20 percent. Income form the trust is payable to the beneficiaries for up to 20 years, or for one or more persons' lifetimes. The Foundation would then use the money to satisfy the wishes of the donors as stated in the trust document for betterment of the university.