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FUNDAMENTALS OF PLANNED GIVINGAs to the first element, it is necessary to know the beneficiary’s date of birth, inthat the age to use is that closest to his or her birth date.(c) Charitable Remainder UnitrustsThe other basic type of charitable remainder trust is, as noted, the charitableremainder unitrust.Specific Rules. When a unitrust is utilized, the donor (or other income beneficiaryor beneficiaries) annually receives income in an amount equal to a fixedpercentage of net fair market value of the trust assets, valued annually (a unitrustamount). A percentage is fixed if it is the same either as to each recipient oras to the total percentage payable in each year of the payment period.A federal income tax charitable deduction is available for the creation of aremainder interest for a charity, by means of a charitable remainder unitrust,when nine basic criteria are satisfied. (Some of these elements are the same as for acharitable remainder annuity trust, as they are common to all charitable remaindertrusts.) These criteria are:1. The trust must be structured to pay a unitrust amount to or for the use ofone or more noncharitable beneficiaries.2. Each noncharitable beneficiary must be alive at the time the trust isestablished.3. The unitrust amount must be equal to at least 5 percent of the net fairmarket value of the trust property, valued annually.4. The trust cannot qualify if the unitrust amount for a year is greater than50 percent of the value of the trust’s assets, determined annually.5. The unitrust amount must be payable at least annually.6. The unitrust amount must be payable either for a term of years (up to 20)or for the life of the noncharitable beneficiary (or beneficiaries).7. The trust cannot pay any amounts, other than the unitrust amount, to orfor the use of any person other than the charitable organization that is theremainder beneficiary.8. The value of the remainder interest in each item of property placed in thetrust must be at least 10 percent of the value of that property.9. The remainder interest created by the trust must be transferred to or forthe use of the charitable organization involved or retained by the trust forthat use.Again, there are other requirements, but these are the fundamental ones.A donor can make additional contributions to a charitable remainder unitrust.A trust does not qualify as a charitable remainder unitrust if any personhas the power to alter the amount to be paid to any named person, other thanthe charitable beneficiary, if that power would cause any person to be treated asthe owner of the trust, or any portion of it, under the grantor trust rules.The trust may not be subject to a power to invade, alter, amend, or revokefor the beneficial use of a person other than a charitable organization. 152