Testamentary Charitable Remainder Unitrust: Have Your Cake and Eat it Too!
Stephen: We were really having a tough time determining how to best split our estate until we received a mailing from a gift planning office at a charity. The mailer talked about testamentary charitable remainder unitrusts. The brochure really sparked our interest.
The testamentary charitable remainder unitrust was a new concept to Karen and Stephen.
Karen: I didn't realize that there was a way we could stretch our assets so that we could accomplish both goals of leaving an inheritance to our kids and making a substantial gift to charity.
Stephen and Karen established a testamentary charitable unitrust as part of their estate plan. Their plan will transfer their retirement accounts to fund a unitrust after their lifetimes. This trust will provide a steady stream of payments to their son and daughter for a term of 20 years. At the end of 20 years, the trust balance will be transferred directly to the charity they designate to help make an impact for the future on the good work that they do.
Stephen: We are thrilled that we are able to use our retirement accounts during our lives and that when we no longer need them, we can use these savings to provide our family with payments for a long time and then support our favorite charities.
Is a testamentary charitable remainder unitrust right for you?
Retirement accounts, such as an IRA or 401(k), make great gifts to fund a testamentary charitable remainder unitrust. The trust will provide income to family while also benefiting charity. If you have questions about this gift option, please give us a call.
*Please note: The name in the story is representative of many of the faithful who need creative ways to provide income to their heirs for a term of years and then leave the remainder to their favorite charitable cause. The Catholic Foundation hopes you enjoy these descriptive examples of legacy gift planning. Since your benefits may be different, you may want to click here to view an example of your benefits.