A charitable remainder unitrust (“CRUT”), sometimes referred to as a “standard” CRUT, pays an annually varying unitrust amount (income stream) to the non-charitable income beneficiary. The unitrust amount, or pay-out as it is often called, is computed each year by multiplying the trust value as of the valuation date (generally the first day of each year) by the percentage pay-out rate called for in the trust instrument. The pay-out rate must be at least 5%.

As an example, assume that the CRUT value as of January 1, 2005 is $500,000 and the trust instrument calls for a 7% pay-out, then the unitrust amount for 2005 will be $35,000. The total unitrust amount can be paid once per year or spread equally over monthly, quarterly or semi-annual payment periods. Since the trust must be revalued every year, the unitrust amount will vary (up or down) based upon the annual trust valuation.