How is the amount of a charitable remainder trust income determined?
In advance; if the trust is a “unitrust” an annual percentage rate is specified, though the dollar amount actually paid year by year fluctuates with the value of the trust’s assets. If the trust is an “annuity trust” payments are of equal and fixed annual dollar amounts every year. Either way, the trust payout cannot be changed once the trust is established. How often is (or can) charitable remainder trust income be paid? Usually quarterly, though a donor can specify a different schedule. When does a charitable remainder trust have to begin paying income? At a date specified when the gift is made. Using a “net income” unitrust allows the trust to begin making payments only when it receives cash; if illiquid property is used to fund the trust this is a practical necessity, but a “net income” unitrust can also be invested initially for capital gains, and the investments shifted toward higher income-producing investments if and when the donor needs more income. How is the income from a ch
