What Does Charitable Remainder Unitrust Mean?
A charitable remainder unitrust is a type of trust that has a charity as its beneficiary. A certain percentage of the trust's total annual value is given to the beneficiary every year. Life insurance policies are often included in these trusts.
Insuranceopedia Explains Charitable Remainder Unitrust
The grantor of a charitable remainder unitrust can still put assets into the trust after it has been set up, so its annual value can fluctuate significantly. For this reason, the trust pays out an annual percentage, rather than a fixed amount.