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THE FLEXIBILITY OF A UNITRUST
The unitrust is an irrevocable gift to the Church, but it’s also much more. Because the unitrust is a deferred gift plan, it lets you make a major donation of
securities or other property, but you get to keep the income from those assets.
How a Unitrust Works
The concept of this combination investment plan/gift is simple. You fund a unitrust with assets (appreciated property or stocks generate the greatest net savings for
you). The amount you receive as a life income is a set percentage (you choose it at the start) of the current value of the unitrust, re-determined annually. After your life
(and, if you wish, that of a survivor), the principal of your trust goes to the Church.
You can receive the same percentage every year, even if the unitrust income is less than that percentage (any difference comes
out of capital gains or principal). Or, you can choose a unitrust with a net income plus make-up option, so that if the actual income amount is below the stated percentage, you receive only that
amount (deficiencies are made up in later years when the unitrust income exceeds the stated percentage). You can also receive the lesser of net income or the stated percentage with no make-up option.
Add Up the Benefits
A unitrust offers many advantages:
In the year you create and fund a unitrust, you get a sizable income and gift tax charitable deduction.
If you use appreciated securities to fund a unitrust, you completely
avoid immediate capital gains tax on the appreciation. And, your deduction is based on the current market value, not cost basis, if the asset has been held more than one year.
You secure a life income (often greater than your previous yield.)
You’re provided with a hedge against inflation.
Professional management of the assets frees you from investment worries.
Most importantly, you make a personal commitment of a significant gift to the Church to hasten the work.
 You may use the Gift Legacy Presents Calculator to find out what you can expect to
receive with a unitrust.
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