How Do You Spell UNITRUST?

1. A unitrust, also referred to as a charitable remainder unitrust (CRUT), is a type of irrevocable trust that provides income to the beneficiary while donating the remaining assets to a charitable organization. A unitrust is usually established by an individual or a couple with the intention of supporting a charitable cause or organization.

   The main feature of a unitrust is its income payout mechanism. The trust is typically funded with assets such as cash, real estate, or securities. The trust then distributes a fixed percentage of the trust's value, determined annually, to the beneficiary. This fixed percentage is usually between 5% and 8% of the fair market value of the trust.

   The beneficiary receives income from the unitrust for a specified period, often their lifetime or a given number of years, depending on the terms of the trust. The income payout can be a significant benefit for individuals looking for reliable income during retirement or to meet specific financial goals.

   Upon the death of the beneficiary or the specified period ending, the remaining trust assets are distributed to the chosen charitable organization. The charitable deduction is calculated and claimed at the time the trust is established, providing potential tax advantages to the donor.

   A unitrust provides individuals with the opportunity to support charitable causes while enjoying income benefits during their lifetime. It allows donors to make a significant impact on society while retaining an income stream and potentially reducing their tax liability.

Common Misspellings for UNITRUST

The term "unitrust" is a combination of the words "unit" and "trust", both of which have separate etymologies.

The word "unit" comes from the Latin word "unitas", meaning "oneness" or "unity". It entered English in the late 16th century, primarily used in the context of mathematics to refer to a single entity or quantity.

The word "trust" has its origins in Old Norse and Old English. In Old Norse, the word was "traust", meaning "confidence" or "reliance". In Old English, it was "trēowian", which meant "to have faith" or "to trust in".