What is a Charitable Remainder Unitrust?

A charitable remainder unitrust is defined as a method by which a donor can transfer an asset into a trust account controlled by a charity. The charity will manage the asset and the donor will gain the income from that asset. Once the donor passes on, the asset transfers to the charity.

Charitable remainder unitrusts are often used to give money to alma maters and other charities close to an individual’s heart. It is an irrevocable trust, so the trust needs its own Trust Tax ID number, and will be a separate entity. Once the asset is placed in the trust, the donor (also known as grantor) will have no control over the asset and will not be able to take it back. This type of trust is popular for those who want income from their assets but don’t want to manage those assets. Ultimately, the assets will become a donation to charity rather than being slipped into probate, and they wll still be able to reap the benefits of the asset during their lifetime. The downside is that the asset can’t be retained by the family. A Trust Tax ID or EIN Number can be obtained online in under 1 hour using the official Trust Tax ID / EIN Application.