Testamentary Charitable Remainder Unitrust (T-CRUT)

A Testamentary Charitable Remainder Unitrust is established upon the death of the grantor, typically funded by a traditional retirement account (such as an IRA or 401(k)).

In the post-SECURE Act environment, non-spouse beneficiaries must liquidate inherited retirement accounts within ten years, triggering compressed tax liabilities. By naming a T-CRUT as the IRA beneficiary:

1.

The IRA liquidates tax-free into the tax-exempt trust upon death.

2.

The trust pays a lifetime income stream to the heir, mimicking the benefits of the pre-SECURE Act stretch IRA.

3.

The remaining trust principal passes to a designated charity at the heir’s death, satisfying the 10% remainder test under IRC §664.