Example of Net Income CRUT
How it works:
- You transfer cash, securities, or other property to a trust.
- You receive an income tax deduction and pay no capital gains tax.
- During its term, the trust pays the lesser of it net income and a percentage of its value each year to you or to anyone you name. The trust may make up payout shortfalls in later years.
- When the trust ends, its remaining principal passes to Whitman College.