Testamentary Charitable Remainder Unitrust: Have Your Cake and Eat it Too!
We have all heard the saying "You can't have your cake and eat it too." This phrase describes a situation where we want two good things at the same time when that isn't possible. Karen and Stephen felt this way when they were establishing their estate plan. They wanted to pass their estate to family, but they also had a place in their hearts for our charitable mission.
Stephen: We were really having a tough time determining how to best split our estate until we received a mailing from the gift planning office at our favorite charity. The mailer talked about testamentary charitable remainder unitrusts. The brochure really sparked our interest.The testamentary charitable remainder unitrust was a new concept to Karen and Stephen.
Karen: I didn't realize that there was a way we could stretch our assets so that we could accomplish both goals of leaving an inheritance to our kids and making a substantial gift to charity.Stephen and Karen established a testamentary charitable unitrust as part of their estate plan. Their plan will transfer their retirement accounts to fund a unitrust after their lifetimes. This trust will provide a steady stream of payments to their son and daughter for a term of 20 years. At the end of 20 years, the trust balance will be transferred to our organization to further our work.
Stephen: We are thrilled that we are able to use our retirement accounts during our lives and that when we no longer need them, we can use these savings to provide our family with payments for a long time and then support our favorite charities.
Is a testamentary charitable remainder unitrust right for you?
Retirement accounts, such as an IRA or 401(k), make great gifts to fund a testamentary charitable remainder unitrust. The trust will provide income to family while also benefiting charity. If you have questions about this gift option, please give us a call.
*Please note: The names and image above are representative of a typical donor and may or may not be an actual donor to the Diocese of Monterey. Since your benefits may be different, you may want to click here to view a color example of your benefits.