If you’ve established a substantial estate and are seeking dependable income solutions while also supporting a noble cause, consider a charitable remainder trust. This specialized trust vehicle allows you, or other designated beneficiaries, to receive annual income for either life or a period not exceeding 20 years from assets you contribute to the trust. Upon the trust’s termination, the remaining balance is directed to the Cancer Support Community of Greater Ann Arbor.
Contributing in this manner can offer you valuable tax advantages while also ensuring a source of income. There are two distinct methods to receive these payments, each with its unique advantages:
Annuity Trust: This trust guarantees you a fixed dollar amount of your choosing at the outset. Your annual payments remain consistent, unaffected by any fluctuations in trust investments
Unitrust: With a unitrust, your annual payments are calculated as a variable percentage of the fair market value of the trust’s assets. This percentage is predetermined and subject to annual adjustments. If the trust’s value increases, your payments rise accordingly. Conversely, if the trust’s value decreases, your payments will adjust in tandem.