A charitable remainder unitrust is a trust fund established when you transfer assets to a trustee for the University of Kentucky Chandler Medical Center’s benefit. As with other life income plans, you retain an income interest in the property and continue to receive the income from it for as long as you live, for your lifetime and that of another beneficiary, or for a fixed term up to 20 years (the latter known as a term certain unitrust). Because the Medical Center is given a remainder interest (the University receives the principal at the termination of the trust), you become eligible for substantial tax benefits.

Where a charitable remainder annuity trust provides a fixed amount of income determined at the creation of the trust, the unitrust pays a percentage of the trust assets, as revalued annually.

The amount of the deduction depends upon the ages of the beneficiaries, the percentage paid, and the fair market value of the assets used to fund the trust. If the trust is funded with cash, you may deduct up to 50 percent of your adjusted gross income annually; if it is funded with appreciated securities, you may deduct up to 30 percent. Of course, the five-year carry-over provisions apply with the trust program.

A unitrust provides an excellent hedge against inflation; moreover, you may make additional transfers of cash, securities or property after the unitrust has been established, assuming that trust agreement permits such additions.

For more information about trusts, please contact a development officer or Dion Guest, gift planning officer, at (859) 257-7303.

Note: Please check with your financial advisor for details about which method of giving may best work for you.