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Standard unitrusts The unitrust percentage must be at least five percent and is multiplied by the fair market value of the trust assets at the beginning of each year to determine the annual payout to the income beneficiaries.
A charitable remainder unitrust (CRUT) pays a percentage of the value of the trust each year to noncharitable beneficiaries. The payments generally must equal at least 5% and no more than 50% of the fair market value of the assets, valued annually.
Every executor, administrator, trustee, guardian, conservator, trustee in a noncorporate bankruptcy or receiver of a trust or estate that received in- come in excess of $100 that is taxable under MGL ch 62 at the entity level or to a beneficiary(ies) and that is subject to Massachusetts jurisdiction must file a Form 2.
Charitable remainder annuity trusts (CRATs) distribute a fixed annuity amount each year, and additional contributions are not allowed. Charitable remainder unitrusts (CRUTs) distribute a fixed percentage based on the balance of the trust assets (revalued annually), and additional contributions can be made.
The income tax deduction is usually limited to 30 percent of adjusted gross income. However, it can vary from 20 percent to 60 percent, depending on how the IRS defines the charity and the type of asset. If you cannot use the full deduction the first year, you can carry it forward for up to five additional years.

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The taxation of CRUTs is prescribed by the Internal Revenue Code and accompanying U.S. Treasury regulations. The trust itself is a tax-exempt entity, but the trust distributions to an income beneficiary will be taxable to that beneficiary ing to a four-tiered system.
A charitable remainder unitrust (also called a CRUT) is an estate planning tool that provides income to a named beneficiary during the grantors life and then the remainder of the trust to a charitable cause. The donor or members of the donors family are usually the initial beneficiaries.

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