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

This legal template specifically pertains to a Charitable Remainder Unitrust (CRUT) with a NIMCRUT (Net Income with Makeup Charitable Remainder Unitrust) payment structure, which is governed by the laws of the state of New York, within the United States.

A Charitable Remainder Unitrust (CRUT) is a type of irrevocable trust established by an individual, known as the grantor. The purpose behind setting up a CRUT is to provide income to named beneficiaries for a specific term or their lifetime, while ultimately benefitting a charitable organization or cause designated by the grantor.

This legal template focuses on NIMCRUT, which is a variation of the CRUT payment structure. NIMCRUT allows the trust beneficiaries to receive an annual payment, either a fixed percentage or the trust's net income (whichever is smaller), during the term of the trust. Any income not distributed in a specific year can be accumulated and made up in subsequent years if the income generated is higher.

The template specifically addresses the legal requirements and provisions necessary to create and operate a NIMCRUT Unitrust in the state of New York, under the jurisdiction of USA law. It may include sections relating to the establishment and funding of the trust, the appointment of trustees, the identification and responsibilities of beneficiaries, rules governing the payment calculations, conditions upon which the trust may terminate or be modified, and the charitable organization or cause that will receive the remaining trust assets after the beneficiaries' interests come to an end.

Overall, this legal template aims to provide a comprehensive framework for the creation and operation of a NIMCRUT Unitrust in New York, ensuring compliance with applicable laws and regulations while promoting the grantor's charitable intentions.