Charitable Split Interest Trust
A charitable split interest trust is one in which a portion of the trust goes to a charitable beneficiary and another portion goes to a non-charitable beneficiary, usually the Trustmaker or the Trustmaker’s family.
Charitable Lead Trust
A charitable lead trust is one in which the charity receives the income or a certain amount of the trust for some period of time. At the end of this period of time the remaining balance of the Trust goes to the non-charitable beneficiary.
Charitable Remainder Trust
A charitable remainder trust is the exact opposite of a charitable lead trust. Under the charitable remainder trust, the income or certain amounts of the trust go to the non-charitable beneficiary for a period of time, such as the lifetime of the Trustmaker. At the end of that period of time the balance in the trust goes to the charity.
Unitrust
A unitrust is can be either a charitable lead trust or a charitable remainder trust. In a unitrust the beneficiary receives a fixed percentage of the value of the trust assets as ascertained each year.
Annuity trust
An annuity trust is can be either a charitable lead trust or a charitable remainder trust. In an annuity trust the beneficiary receives a fixed annual amount each year. The amount is limited by the current IRS rules.
Charitable split interest trusts can be a very important method to use to reduce taxes while providing for both charitable and non-charitable trusts.