What is The Foundation?	Leaving a meaningful legacy	“Donor advised funds”	“Charitable gift annuities”	Starting a scholarship fund	Gifts through The Foundation	Wills & Bequests
Charitable Remainder Unitrusts	Foundations as Depositories	Estate Planning Basics	Understanding Living Trusts	Wills... A Closer Look	Perils of “Phishing”	Tax Benefits of Charitable Giving
Have You Ever Been Asked?	Maximizing Tax Benefits (Part 2)	Proper Receipting of Charitable Gifts	Gifting Land	Charitable Gifts and Appraisals	“Bargain Sales” 101	2005 Tax Facts

Serving Union County since 1953 A 501(C)(3) Charitable Organization 126 N. Main Street, P.O. Box 608, Marysville, Ohio 43040 Phone: 937.642.9618 Fax: 937.642.7376 Helpful Articles from the Union County Foundation Director What is a Charitable Remainder Unitrust? (Part of a series of articles on charitable giving and the Union County Foundation by David Vollrath - Exec. Dir.) A charitable remainder unitrust is quite simply a planned giving tool that can provide the donor increased lifetime income, substantial tax savings, and ultimately benefit the charity(s) of ones choice. Too often potential donors don’t consider the idea of setting up a charitable trust because they feel it's “just too complicated” or they really don’t understand the benefits. In simple terms a charitable remainder unitrust is a special type of trust agreement that pays specific lifetime income to designated people (usually a husband and/or wife) at a fixed percentage. Upon the completion of the payments the remaining value is distributed to qualified named charities. The person who originally establishes the trust designates who is to receive payments from the trust, what percentage of the trust value is to be paid out annually (usually 5%-7%), and what charities will ultimately benefit. Many people fund their charitable unitrusts with appreciated assets. When assets are sold within the trust, capital gains tax is by-passed and the full amount received from the sale of the assets can be reinvested to produce income for the trust. In today’s market many assets only yield I%-3%. The charitable unitrust provides a framework for converting low yielding assets into a higher income-yielding instrument. The term unitrust is derived from the fact that once a year, usually on January 1st, the value of the trust is established. The year’s payout will then be equal to the trust’s value multiplied by the designated percentage. For example a $100,000 trust with a 6% designated payout percentage will payout $6000 annually. If that same trust is valued at $106,000 on January 1st of the following year the payout will increase to $6600 for that specific year. Because charity is the ultimate beneficiary, the person who originates the charitable remainder unitrust receives an initial tax deduction based on the present value of the future gift to charity. This deduction can be substantial and can be carried forward for up to five tax years. A charitable remainder unitrust agreement must always designate the following four items: 1. Unitrust payout percentage specifies what percentage of the annual trust valuation will be paid out. 2. Duration specifies over what period of time the payments will be made. This may be for one life, two lives, or a term of 1-20 years. 3. Beneficiary specifies what charity is to receive the trust remainder. 4.Trustee specifies who is to oversee the investments and administration of the trust. This can be a bank, community foundation, charity, trust company, or individual. The Union County Foundation is equipped to assist you with establishing a charitable remainder unitrust or in answering questions you may have regarding this or other planned giving instruments. Please call us at 642-9618, email us at commfounduc@imetweb.net, or stop by our Marysville office at 126 N. Main St. We are here to help you.... “preserve your footprint in time.” Read the next article in the series See a list of all articles