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

This legal template pertains to the establishment and regulation of a specific type of charitable trust known as a Charitable Remainder Unitrust (CRUT) in the state of Pennsylvania, under the purview of United States law. The template focuses specifically on two variations of CRUT known as Flip-CRUT and Flip-NIMCRUT.

A CRUT is a type of trust wherein a donor contributes assets to a trust while designating a charitable beneficiary. The beneficiary then receives regular income payments from the trust for a specified term of time or for the remainder of their lifetime. Upon the expiration of the term or the beneficiary's passing, the remaining trust assets are irrevocably transferred to the designated charitable organization or foundation.

This template outlines the legal provisions and requirements for establishing a Flip-CRUT and Flip-NIMCRUT in Pennsylvania. The Flip-CRUT involves a change in the trust's primary non-charitable beneficiary at some point during the term, while the Flip-NIMCRUT permits the non-income-producing assets to be replaced during the trust's term.

Furthermore, the template provides detailed instructions and guidelines for determining the unitrust payment options for both concurrent and consecutive interests. Concurrent interests refer to the situation where multiple beneficiaries concurrently receive income from the trust, while consecutive interests pertain to the sequential distribution of income to multiple beneficiaries over time.

By utilizing this comprehensive legal template, individuals or organizations seeking to set up a Charitable Remainder Unitrust with specific payment options in Pennsylvania can ensure compliance with the applicable laws and regulations of the state and the United States.