Navigating the Estate-bequest Terrain

Thus, if a donor wants to benefit a charity but also needs to provide for another individual, a CRUT should do the trick.

The CRUT takes the lump-sum withdrawal, then pays the unitrust amount to the individual beneficiary. The unitrust amount will be larger because the underlying principal was not reduced by the payment of income tax on the IRD. The estate will receive a charitable deduction for the value of the charitable remainder.