Charitable Remainder Trusts

A charitable remainder trust will provide meaningful support to Miami University in the future while providing a stream of income to you or someone you designate for life or a term of years. At the termination of the trust, the remainder of the assets will be used to support the academic unit or program you have designated. There are two basic types of charitable remainder trusts: the charitable remainder unitrust and the charitable remainder annuity trust.

Charitable Remainder Unitrust

	You transfer assets to a charitable unitrust and your designated income beneficiary will receive quarterly income payments.
	You select a fixed payout rate.
	The unitrust is revalued annually to determine the payout amount.
	When the unitrust's value increases or decreases, the payout increases or decreases. By choosing a low payout percentage the unitrust assets can grow which can allow for the payments to grow as well.
	You may make additional contributions to a unitrust at any time in the future.
	You receive a federal income tax deduction the year the unitrust is established.
	If you use appreciated assets to fund the unitrust, you pay no capital gains tax when the assets are sold.
	The transferred assets are removed from your estate, possibly reducing estate taxes.
	When the charitable remainder unitrust ends, its remaining principal passes to Miami University, providing generous support for future Miamians.

Charitable Remainder Annuity Trust

	A charitable remainder annuity trust provides the same advantages as the charitable remainder unitrust with two exceptions.
	The beneficiary receives a fixed amount annually based on the selected payout percentage and the initial value of the annuity trust's assets.
	You cannot make additional contributions to an annuity trust once it is established.