Charitable Remainder Unitrust (CRUT): NIMCRUT Unitrust Payment for Term of Consecutive Interests (Massachusetts)

This legal template is specifically designed for the creation and implementation of a Charitable Remainder Unitrust (CRUT), more specifically, a NIMCRUT (Net Income with Makeup Charitable Remainder Unitrust) with Unitrust Payment for the Term of Consecutive Interests. The template focuses on the laws and regulations governing this type of trust in the state of Massachusetts within the United States.

A Charitable Remainder Unitrust is a type of irrevocable trust established for the purpose of benefiting both charitable organizations and non-charitable beneficiaries, often individuals or families. The trust is composed of assets that generate income, and the beneficiaries receive a fixed percentage of the trust's net value annually or at regular intervals. Upon the expiration of the trust term or the death of the last non-charitable beneficiary, the remaining assets are then transferred to the designated charitable organization(s).

The unique aspect of this particular CRUT template is that it is a NIMCRUT. Net Income with Makeup Charitable Remainder Unitrust refers to a trust distribution method where the beneficiaries receive either the net income generated by the trust or a fixed percentage of the trust's net value, whichever is lower. Any undistributed portion of the trust's income may be accumulated and made up in later years when the trust income exceeds the payout amount.

Additionally, this template specifies that the unitrust payment will be made for the term of consecutive interests. This means that different individuals or families can be designated as beneficiaries in a sequential manner. Each successive beneficiary will receive the unitrust payment until their interest in the trust terminates, either due to their death or by reaching the predetermined time frame.

As this legal template is applicable under the jurisdiction of the state of Massachusetts and the broader laws of the United States, it likely includes specific clauses to ensure compliance with the state and federal tax codes, regulations on charitable organizations, trust administration, and any other pertinent legal requirements.

Overall, this CRUT template provides a comprehensive guide for individuals or legal professionals involved in creating a NIMCRUT with Unitrust Payment for the Term of Consecutive Interests in Massachusetts, serving both charitable organizations and non-charitable beneficiaries while maximizing tax benefits and meeting legal obligations.