Charitable Remainder Unitrust (CRUT): NICRUT Unitrust Payment for a Term of Years (California)

This legal template refers to a Charitable Remainder Unitrust (CRUT) with a specific payment structure known as a NICRUT (Net Income with Makeup Charitable Remainder Unitrust). It is designed for implementation within the state of California, under the laws of the United States.

A Charitable Remainder Unitrust (CRUT) is a type of trust arrangement where an individual (known as the donor or grantor) transfers assets into a trust for the benefit of a charitable organization. The trust is established to provide income payments to one or more non-charitable beneficiaries for a specified period or until their death, after which the remaining assets are distributed to the designated charity.

In this specific template, the CRUT is structured as a NICRUT, indicating that the income payments to the non-charitable beneficiary are based on the trust's net income annually or more frequently. If the trust's net income is insufficient in a given year, then the shortfall will be made up in subsequent years if the trust generates excess income. This makeup provision ensures that the non-charitable beneficiary receives the agreed-upon payments over the term of the trust.

This legal template is tailored to be applicable within the jurisdiction of California, adhering to the regulations and legal framework established in the state. It also complies with relevant provisions of the United States law governing charitable remainder unitrusts.

Overall, this template serves as a valuable resource for legal professionals, individuals, or organizations seeking to establish a Charitable Remainder Unitrust with a prescribed payment arrangement in California, ensuring compliance with the state's laws and regulations.