A Charitable Remainder Unitrust (CRUT) has advantages over a Charitable Remainder Asset Trust (CRAT).
Unlike the CRAT, a CRUT allows you to make as many contributions as you would like. Also the asset’s current market value is not its value on the date it was transferred to the CRAT but it is the asset’s current market value.
The CRAT allows you to benefit from a financial market that is doing well. In years when the financial market is not doing well, a make-up provision can be included in a CRAT to allow for additional income in future years which makes up for the down years.
A CRUT requires that you receive a minimum income of 5% of the asset’s current market value and not more than 50%. You can choose a percentage or the trust’s net income, whichever is less.
Consult your estate planning attorney for further information.