CRUTs are separately invested and pays a percentage of its principal, revalued annually, to you and/or other income beneficiaries you name for life or a term of years (up to a maximum of 20). You receive a charitable income tax deduction for a portion of the value of the assets you place in the trust. After the unitrust terminates, the balance or “remainder interest” goes to the Josh McDowell Ministry to be used as you designate.

You can use almost any asset to fund a unitrust, including cash, publicly traded stocks and bonds, closely held stock, partnership interests, and real estate. You can tailor your unitrust to meet many financial or estate planning goals. You can choose to receive income beginning immediately or you can structure the trust and its investments to defer most of your income to a future time. 

If you are insurable, you can even use some of the income or tax savings produced by your plan to purchase a life insurance policy that replaces your gift and flows to your heirs outside of your estate. Josh McDowell Ministry can assist you and your advisors as you design the right unitrust to achieve your goals.

Starting Steps:

1. Contact Josh McDowell Ministry Development Office to let us know of your intention or if you have any questions.
2. Transfer cash, securities, or other appreciated property into a trust. The required minimum for this type of gift is $100,000.
3. The trust pays a percentage of the value of its principal, which is valued annually, to you or beneficiaries you name.
4. You may use your real estate to fund a Charitable Remainder Unitrust (CRUT), which may be structured to provide lifetime income for you and/or others, or income for a term of years.
5. When the trust terminates, the remainder passes to Josh McDowell Ministry to be used as you have directed.

• Receive income for life or a term of years in return for your gift. 
• Receive an immediate income tax deduction for a portion of your contribution.
• Pay no up-front capital gains tax on appreciated assets you give.
• You can make additional gifts to the trust as your circumstances allow for additional income and tax benefits.

Additional Comments:

The recently enacted SECURE Act mandates that most beneficiaries of Retirement Plan Assets, other than a spouse, must withdraw all funds and pay taxes on them within a 10-year period. This can result in much larger taxes for beneficiaries and result in no further financial benefits after the 10-year period. Donors wanting to mitigate their annual taxes AND provide lifetime income benefits for heirs may want to consider leaving their Retirement Plan Assets to a charitable remainder trust. The beauty of this plan is the support it provides Josh McDowell Ministry.

FLIP Unitrust (Professional Retirement Unitrust)

A FLIP Unitrust defers income payments until a future date when the income switch “flips” on. Until that predetermined time, the trust pays net income only. If no net income is produced, the trust pays nothing. Once the “flip” event occurs, the trust converts or “flips” to a standard unitrust that pays a defined percentage of the fair market value of the assets to the beneficiaries beginning January 1 of the following year. 

This flexible feature allows the trust to defer income payments until the sale of an illiquid asset, such as real estate, or to flip on a particular date set up at the time of the trust. If you set up a Professional Retirement Unitrust, the trust “flips” at your pre-determined retirement date, meaning that it then provides you with supplemental income in retirement starting January 1 of the following year. It is a great way to make a gift and supplement retirement at the same time.