Charitable Remainder Unitrust (CRUT): Flip-CRUT and Flip-NIMCRUT Unitrust Payment Options for Term of Concurrent and Consecutive Interests (Illinois)

This legal template pertains to the establishment and operation of a Charitable Remainder Unitrust (CRUT) in the state of Illinois, United States. Specifically, it focuses on two variations of CRUTs, known as Flip-CRUT and Flip-NIMCRUT, and outlines the unitrust payment options available for these trusts during both concurrent and consecutive interests.

A Charitable Remainder Unitrust is a type of irrevocable trust commonly utilized for estate planning and charitable giving purposes. It allows a donor (referred to as the grantor) to transfer assets into the trust, with the trust then making regular payments to designated beneficiaries (such as the grantor or other individuals) for a predetermined period or until the beneficiaries' death.

The template addresses the specific requirements and regulations concerning Flip-CRUT and Flip-NIMCRUT variations of the unitrust. A Flip-CRUT refers to a trust that initially pays a fixed percentage of the trust's value to non-charitable beneficiaries during the "income phase" and later "flips" to become a standard CRUT with fixed payments made to charity. On the other hand, a Flip-NIMCRUT functions similarly to a Flip-CRUT but allows for variations in the payment amount during the income phase.

Additionally, the template covers the legal aspects of concurrent and consecutive interests within the CRUT. A concurrent interest involves multiple non-charitable beneficiaries receiving payments simultaneously, such as a married couple as joint beneficiaries. Conversely, consecutive interests occur when payments pass sequentially to different beneficiaries, such as when one beneficiary's interest ends, and the remaining assets go to another beneficiary.

The template ensures compliance with Illinois state laws and incorporates provisions specific to the United States legal framework governing CRUTs. It likely includes sections addressing trust terms, trustee obligations, beneficiary roles and rights, tax considerations, and other relevant legal elements necessary to establish and operate a Charitable Remainder Unitrust in the state of Illinois under USA law.