Related Links


Gift illustration


Complete gift description


Is this gift for you?


Who should trustee?


Additional Planning Tips


Gift example



More about Charitable Remainder Unitrusts

The charitable remainder unitrust is one of the most flexible gift plans available. You can make a significant gift to Mercy Foundation while addressing multiple financial and family needs.

The unitrust is an individually managed trust paying its beneficiaries you, your spouse, family members, or other individuals income at a fixed percentage of the value of its principal, which is revalued annually. In general, here's how a unitrust works:

  • The unitrust pays income for the lifetimes of the beneficiaries, for a term of up to 20 years or for a combination of both.
  • Beneficiaries receive a fixed percentage of the value of the trust's principal, which is revalued annually.
  • Income in excess of the unitrust amount is reinvested to maintain principal and allow for growth.
  • When your unitrust terminates at the death of the last beneficiary or at the end of the trust term the remaining balance will be available to Mercy Foundation for the purpose you designated when you created the trust.

What are the tax advantages?

  • If you fund a unitrust with appreciated securities or property, no up-front capital-gains tax is due. You can contribute appreciated, but low-yielding, assets and put the entire value of your gift to work generating higher income for you.
  • Similarly, no capital-gains tax is applied to the growth of a unitrust's principal. Mercy Foundation offers a version of the unitrust see details in planning tips and in this example that maximizes growth for a term, and then reinvests the appreciated principal in income investments with no capital-gains tax reduction.
  • You receive a charitable deduction when you create a unitrust that will be based on the full, fair market value of the assets you contribute, reduced by the present value of the assets you retained. Mercy Foundation can help generate this deduction amount for your planning purposes.

How do you create a charitable remainder unitrust?

You should be advised by an attorney or other advisor with expertise in charitable trusts and estate planning. Mercy Foundation will work with your advisors to help meet your financial and philanthropic goals. If you do not have an attorney, Mercy Foundation can provide a referral. Once your trust agreement is signed, you can "fund" your unitrust by transferring assets to your trustee.

« Back to Charitable Remainder Unitrusts

Compare Gift Plans

Select up to three gift plans to learn more about how they can help you and Mercy Foundation.


Charitable Remainder Unitrust Calculator

Calculate your personal lifetime income from a Charitable Remainder Unitrust.


Spotlight No. 2

Request Your Personalized Proposal

Contact our experts to help you find the right gift plan that meets your needs