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Charitable Remainder Unitrust (CRUT)

Are you concerned about the high cost of capital-gains tax with the sale of an appreciated asset? Have you recently sold property and are looking for a way to save on taxes this year while planning for retirement? A charitable remainder unitrust may offer the solutions you need.

How you benefit

  • You receive income for life, for a term of up to 20 years, or life plus a term of up to 20 years
  • You avoid capital-gains tax on the sale of your appreciated assets
  • You receive an immediate charitable income tax deduction for the charitable portion of the trust

How it works

You transfer cash or assets to fund a charitable remainder unitrust. In the case of a trust funded with appreciated assets, the trust will sell the assets tax-free. The trust is invested to pay income to you—or any other trust beneficiaries you select—based on a life, lives, a term of up to 20 years, or a life plus a term of up to 20 years. You receive an income tax deduction in the year you transfer assets to the trust, and Purdue benefits from what remains after all the trust payments have been made.

Questions?

Contact Jeanne Butler at jlbutler@purdueforlife.org.

Additional information

A charitable remainder unitrust pays you income that reflects the value of the trust’s assets. Your income has the potential to increase over time as the trust grows in value. There are several unitrust payout options to meet your needs. The best option may depend on the nature of the asset used to fund the trust. We would be happy to work with you and your tax advisor to determine which payout option is best for you.