Unitrust

How it works:

• This gift is a combination of an investment and a planned gift.
• A unitrust is funded with appreciated assets (appreciated property or stocks generate the greatest net savings for you).
• You choose a set percentage of the unitrust's value to receive as a life income.
• After your lifetime (or that of a survivor, should you wish), the trust's principal is given to Childrens Hospital Los Angeles.

Payments to you from the unitrust:

1. You can choose to receive the same percentage every year from the unitrust. If the unitrust income is less than the percentage specified, the difference is paid from the capital gains or principal.
2. You may choose a unitrust that pays a net income plus make-up option. 
   In this case, if the unitrust's actual income amount is below the payment percentage specified, you receive only the amount that the trust gained. 
   In this scenario, deficiencies are made up in later years when the unitrust income exceeds the stated percentage.

Benefits of a unitrust:

• A sizable income tax charitable deduction in the year that the unitrust is created and funded
• Tax deduction is based on the current market value of the property, not the cost basis.
• Avoidance of payment on current capital gains taxes on appreciated property
• Securement of a life income that is often greater than your previous yield
• Securement of a hedge against inflation
• Professional management of the assets frees you from investment worries

NOTE:  Although the information set forth herein is believed to be accurate, you should consult your attorney or other tax advisor prior to taking any action.