What kinds of charitable remainder trusts are available?
A. There are two basic types. An annuity trust will pay you a fixed dollar amount for the rest of your life. A unitrust will pay you a fixed percentage of the trust principal each year, so if the value of the trust principal increases over time, your income increases with it. By law, your trust must pay you at least 5% of the principal. You may choose a higher payout rate if you wish, but the higher the payout rate the lower your income tax charitable contribution deduction.
