The unitrust is very similar to the annuity trust, except that the unitrust provides a variable income. Payment is based on a fixed percentage of the net fair market value of the trust assets as valued each year. A variation of this type of unitrust provides an annual income that is the lesser of the trust’s net income or the fixed percentage amount. Purdue Research Foundation can act as trustee. The minimum amount needed is $50,000.

Taxation: The beneficiary is taxed on income received (ordinary income or capital gain).

Benefits:

• Tax deduction based on value of assets transferred.
• Avoidance of capital gains tax.

For more information, please call the Planned Giving Office at (800) 677-8780 or e-mail plangift@purdue.edu.