Charitable Remainder Unitrust (CRUT): Fixed Percent Unitrust Payment for Term of One Measuring Life (California)

This legal template pertains to a specific type of trust known as a Charitable Remainder Unitrust (CRUT) that is established under the jurisdiction of the state of California in the United States of America. The template outlines the terms and conditions for a fixed percentage unitrust payment that will be made for a specific term, which is based on the life expectancy of a designated individual, also known as the measuring life.

A charitable remainder unitrust is a legal arrangement that allows individuals or entities to transfer assets into a trust while receiving a regular income stream. The trust assets are managed by a trustee and, upon the expiration of the stated term or the death of the measuring life, the remaining assets within the trust are then donated to one or more charitable organizations, as designated by the trust agreement.

This template provides a framework for establishing a CRUT in California, specifying that the trust's income will be paid out to the beneficiaries as a fixed percentage of the trust's net fair market value, which is determined annually. The template also includes provisions for the selection of the measuring life, the distribution of income, potential amendments to the trust, and the process for charitable beneficiaries to receive the remaining trust assets upon termination.

It is important to note that this template is specific to California law and adheres to the legal framework and requirements set forth by the state. The CRUT arrangement outlined in this template provides individuals with an opportunity to donate assets to charitable causes while enjoying income during their lifetime or a fixed term.