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

This legal template pertains to the establishment of a Charitable Remainder Unitrust (CRUT) in the state of Texas, operating under the regulations set forth by the United States law. Specifically, it focuses on the options available for the payment of term-based concurrent and consecutive interests within a CRUT, namely the Flip-CRUT and Flip-NIMCRUT unitrust payment options.

A CRUT is a type of trust arrangement that allows an individual to transfer assets, usually appreciated securities or real estate, to a trust while retaining an income stream for a specified period or until their death. At the end of the term, the remaining assets in the trust are distributed to one or more charitable beneficiaries.

The template expands on the concept of a CRUT by delving into the details of two specific unitrust payment options available under Texas law: Flip-CRUT and Flip-NIMCRUT. A Flip-CRUT allows the donor to transfer assets to the trust and subsequently "flip" the income payments from a fixed percentage to a unitrust percentage at a predetermined trigger event, such as the sale of an asset. On the other hand, a Flip-NIMCRUT operates similarly but with a Net Income With Makeup Charitable Remainder Unitrust (NIMCRUT) structure, enabling the trustee to 'make up' any deficiency in income payments during years when the trust's income is insufficient.

The template likely provides a comprehensive outline for the creation and establishment of these unique CRUT arrangements, covering various legal considerations, provisions, and requirements specific to the state of Texas. It likely lays out the necessary documentation, instructions, and guidelines that individuals or legal professionals can utilize as a starting point to craft legally sound and customized Flip-CRUT and Flip-NIMCRUT unitrust agreements for charitable purposes within the boundaries of Texas law.