Ren partners with you to help determine if a charitable remainder trust is appropriate for you. There are two categories of charitable remainder trusts: charitable remainder annuity trust and charitable remainder unitrust.
Charitable remainder annuity trusts distribute a fixed annuity amount each year to beneficiaries based upon the value of the assets that are initially contributed to the trust. Charitable remainder annuity trusts may only be funded once and do not allow future additional contributions to the trust.
Charitable remainder unitrusts distribute a unitrust amount each year to beneficiaries, which is a fixed percentage of the value of the assets at the beginning of each calendar year. The trust assets are revalued annually, so the income interest can increase or decrease with the value of the trust. Additional contributions to the trust are permitted.
Once the type of trust is determined, we consult with you to review detailed terms of the trust, including the fixed percentage payout rate, the projected income payments, IRS interest rates, and other IRS-required provisions.
From there the income interest will be paid out to your designated beneficiary for a lifetime or at the conclusion of the term of years. The remainder interest will then be passed on to a qualified organization, such as a charity, family foundation, or donor-advised fund, as specified in the trust document.