A Unitrust refers to a trust from which a fixed percentage of the net fair market value of the trusts assets valued annually, is paid each year to a beneficiary. In these trusts, the donor transfers property to a trust after retaining the right to receive payments from the trust for a specified term. Once the term ends, the trust estate is paid to a public charity designated by the donor. During a unitrust's term, a trustee invests the unitrust's assets and pays a fixed percentage of the unitrust's current value, as determined annually, to the income beneficiaries. If the unitrust's value goes up, its payout increases proportionately. Likewise, if the unitrust's value goes down, the amount it distributes also declines. Payments must be at least five percent of the trust's annual value and are made out of trust income, or trust principal if income is not adequate.
Broward Florida Charitable Remainder Unit rust: A Broward Florida Charitable Remainder Unit rust is a legal and financial planning tool that allows individuals to support charitable causes while receiving income for themselves or their designated beneficiaries. It is specifically designed for residents of Broward County, Florida, considering local laws and regulations. Keywords: Broward Florida, Charitable Remainder Unit rust, legal, financial planning, support charitable causes, income, beneficiaries, residents, Broward County, Florida, local laws, regulations. Types of Broward Florida Charitable Remainder Unit rusts: 1. Charitable Remainder Annuity Trust (CAT): This type of unit rust guarantees a fixed annual income to the donor or designated beneficiaries throughout its duration. The annual income remains the same, regardless of any fluctuations in the trust's value. 2. Charitable Remainder Unit rust (CUT): In contrast to a CAT, a CUT provides a variable income based on the trust's value, revalued annually. The beneficiaries receive a predetermined percentage of the trust's value, recalculated each year. 3. Net Income Charitable Remainder Unit rust (NICEST): The NICEST allows the donor to receive income based on the trust's net income for a specific period or their lifetime. In this type, the principal is untouched, and if the trust income exceeds the predetermined percentage, it is distributed to the beneficiaries or accumulated for future payments. 4. Flip Charitable Remainder Unit rust (FLIP CUT): A FLIP CUT operates differently based on a predetermined triggering event or time. Initially, it may function as a CUT or NICEST, providing income to the donor or beneficiaries. However, it converts to a standard CUT or NICEST once a triggering event occurs, such as the sale of a property or reaching a specific date. 5. Charitable Remainder Unit rust with Makeup Provision (CUT with Makeup): This type of unit rust allows the donor to compensate for any shortfall in income payments caused by low-performing trust assets. If the trust income is not sufficient to meet the predetermined payment percentage, the trust can make up the difference in future years when the income is higher. These various types of Broward Florida Charitable Remainder Unit rusts offer unique features, flexibility, and opportunities for donors to support charitable causes while tailoring their financial plans to meet specific needs.Broward Florida Charitable Remainder Unit rust: A Broward Florida Charitable Remainder Unit rust is a legal and financial planning tool that allows individuals to support charitable causes while receiving income for themselves or their designated beneficiaries. It is specifically designed for residents of Broward County, Florida, considering local laws and regulations. Keywords: Broward Florida, Charitable Remainder Unit rust, legal, financial planning, support charitable causes, income, beneficiaries, residents, Broward County, Florida, local laws, regulations. Types of Broward Florida Charitable Remainder Unit rusts: 1. Charitable Remainder Annuity Trust (CAT): This type of unit rust guarantees a fixed annual income to the donor or designated beneficiaries throughout its duration. The annual income remains the same, regardless of any fluctuations in the trust's value. 2. Charitable Remainder Unit rust (CUT): In contrast to a CAT, a CUT provides a variable income based on the trust's value, revalued annually. The beneficiaries receive a predetermined percentage of the trust's value, recalculated each year. 3. Net Income Charitable Remainder Unit rust (NICEST): The NICEST allows the donor to receive income based on the trust's net income for a specific period or their lifetime. In this type, the principal is untouched, and if the trust income exceeds the predetermined percentage, it is distributed to the beneficiaries or accumulated for future payments. 4. Flip Charitable Remainder Unit rust (FLIP CUT): A FLIP CUT operates differently based on a predetermined triggering event or time. Initially, it may function as a CUT or NICEST, providing income to the donor or beneficiaries. However, it converts to a standard CUT or NICEST once a triggering event occurs, such as the sale of a property or reaching a specific date. 5. Charitable Remainder Unit rust with Makeup Provision (CUT with Makeup): This type of unit rust allows the donor to compensate for any shortfall in income payments caused by low-performing trust assets. If the trust income is not sufficient to meet the predetermined payment percentage, the trust can make up the difference in future years when the income is higher. These various types of Broward Florida Charitable Remainder Unit rusts offer unique features, flexibility, and opportunities for donors to support charitable causes while tailoring their financial plans to meet specific needs.
