Can I receive the same payout rate on a charitable remainder unitrust as I can on a gift annuity?
Typically not. The gift annuity rate is typically higher than a rate that you can receive on a charitable remainder unitrust. This is because the payment from a gift annuity is fixed and will never change with time. Because $1,000 10 years from now is less valuable than $1,000 right now, a gift annuity’s payment to you will be worth slightly less every year. A payment from a unitrust will fluctuate with the current fair market. Typically this will mean that you will have an increase in your payments every year to offset inflation. Because your payments are increasing every year, the payout rate must be lower in a unitrust in order to give you an equal benefit overall.
