Charitable Remainder Unitrusts

This is an irrevocable trust that generates a deductible charitable gift and also provides the donor, or some other beneficiary, an income that is both fixed and variable (which is not as contradictory as it sounds). It is "fixed" to the extent that it is a fixed percentage of the fair market value of the property placed in trust. It is "variable" because the assets are valued annually and thus reflect changes or appreciation in market values. The donor who sets up this kind of trust avoids capital gains taxes, gets a current income tax deduction, and provides for a specified charity to get whatever property remains in the trust at his time of death.