Charitable Remainder Annuity Trusts
The distinguishing feature of charitable remainder trusts is that the amount distributed at it termination—the remainder—is paid to CNEWA. To qualify for special tax consideration, the trust must be in one of two forms:
Unitrusts. The primary feature of the charitable remainder unitrust is that is provides for payment to the beneficiary(ies) of an amount that may vary. The payment must equal a fixed percentage (at least 5%) of the net fair-market value of the trust assets as valued annually.
Annuity trusts. The major difference from the unitrust is that the charitable remainder annuity trust provides for a fixed payment. The payment must equal a specified amount of not less than 5% of the initial fair-market value of the gift in trust.