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Whats the difference between a unitrust and an annuity trust?

April 26, 2017Annuity difference Trust unitrust

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Whats the difference between a unitrust and an annuity trust?

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The difference lies in the amount of the payments from the trust. With a unitrust, the payments are based on a fixed percentage of the value of the trust – but the principal of the trust is revalued each year. An annuity trust pays out a fixed amount – it never changes, regardless of whether the trust value goes up or down.