Penn currently serves as trustee of many charitable remainder trusts and provides these services to donors and beneficiaries of those trusts. Each is outlined below. This is an individual trust paying the donor a fixed percentage of the principal in the trust as it is valued annually. The rate of return for the trust must be at least five percent. As with other life income gifts, however, a higher income rate for the unitrust will generate a lower charitable deduction and will mean a smaller growth of the principal that ultimately goes to Penn.
Unitrust income is taxed to the donor based upon the trust's investments.
Will vary slightly depending upon the month the gift is made, according to U.S. Treasury Department Regulations. This is the same type of gift vehicle as the unitrust except that the income payment is a fixed-dollar amount when the gift is established. Because the income will not vary, the annuity trust is attractive to donors seeking secure and stable future income. Term Trust A unitrust or annuity trust may run for a shorter period than the lives of the income beneficiaries. A Term Trust may be established to provide income to a beneficiary for a limited number of years.