What is the difference between a charitable remainder annuity trust (CRAT) and a charitable remainder unitrust (CRUT)?
The major difference is in the valuation of the trust assets, which partly determines the amount of income received by the income beneficiary(ies). The CRAT assets are valued at the time they are placed into the trust and are never revalued thereafter. Annual payments to the income beneficiary(ies) remain the same, regardless of whether the trust assets appreciate or depreciate in value.
