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.
A Franklin Ohio Charitable Remainder Unit rust is a type of charitable trust that operates under the laws of Ohio with the purpose of providing individuals with the ability to support charitable causes while also receiving financial benefits. It is a legal entity created by an individual, known as the granter, who contributes assets to the trust. The Charitable Remainder Unit rust (CUT) is a popular option within the Franklin Ohio Charitable Remainder Unit rust. This type of trust provides income to the beneficiary for a specified period or for their lifetime, after which the remaining assets are distributed to one or more charitable organizations. The income provided to the beneficiary is calculated as a fixed percentage of the trust's value, as revalued annually. Another type of Franklin Ohio Charitable Remainder Unit rust is the Net Income Charitable Remainder Unit rust (NICEST). In this type, the beneficiary receives the trust income based on the net income generated by the trust assets each year. If the trust generates more income than distributed, the excess is added to the trust principal. The Flip Charitable Remainder Unit rust is also available in Franklin Ohio. This type of trust operates initially as a standard CUT, providing income to the beneficiary. However, upon the occurrence of a triggering event, such as the sale of a specific asset, the trust flips into a different investment strategy, potentially increasing the income generated by the trust. Additionally, Franklin Ohio Charitable Remainder Unit rusts can be established as charitable lead trusts (Cuts). In a CLT, the trust's income goes to charitable organizations for a specific period, after which the remaining assets are passed on to non-charitable beneficiaries, such as family members or friends. Overall, a Franklin Ohio Charitable Remainder Unit rust allows individuals to support charitable causes while also benefiting themselves or their loved ones. It is a versatile tool for philanthropy and estate planning, offering various options to cater to specific financial goals and personal circumstances.
