How does a NIMCRUT differ from other charitable remainder trusts?
Like other charitable remainder trusts, a NIMCRUT allows assets to build free from taxation. Generally, the older the donor and the lower the stated distribution rate from the trust, the greater the tax deduction.
Is a NIMCRUT always irrevocable?
Yes, a NIMCRUT is always irrevocable and competent administration and accurate record-keeping is especially important. Though well-established in law, and risk-free in the hands of professionals, NIMCRUTs are not do-it-yourself projects.
A Wealth of Benefits:
Tax deductible contributions
No limit on contributions
No required contributions
Tax-free buildup of assets
Low maintenance costs
Steady or fluctuating income stream, as desired
No requirement to take income
Creditor protection
One or more income beneficiaries
Privacy
References:
Canada, R. (2020). Net Income with Makeup Charitable Remainder Unitrusts (NIMCRUTs). Retrieved August 24, 2020, from https://www.rbctrust.com/nimcrut.html