Testamentary charitable remainder unitrust: You can have your cake and eat it too

Testamentary charitable remainder unitrust: You can have your cake and eat it too


We have all heard the saying "You can't have your cake and eat it too." This phrase describes a situation where we want two good things at the same time when that isn't possible. Karen and Stephen* felt this way when they were establishing their estate plan. They wanted to pass their estate to family, but also had a place in their hearts for The American Legion’s charitable mission.

Stephen says, “We were really having a tough time determining how to best split our estate until we received a mailing from the gift planning office. It talked about testamentary charitable remainder unitrusts. The brochure really sparked our interest.”

The testamentary charitable remainder unitrust was a new concept to Karen and Stephen.

Karen says, “I didn't realize there was a way we could stretch our assets so that we could accomplish both goals of leaving an inheritance to our kids and making a substantial gift to charity.”

Stephen and Karen established a testamentary charitable remainder unitrust as part of their estate plan. Their plan will transfer their retirement accounts to fund a unitrust after their lifetimes. This trust will provide a steady stream of payments to their son and daughter for a term of 20 years. At the end of 20 years, the trust balance will be transferred to our organization to further our work.

Stephen continues, “We are thrilled that we are able to use our retirement accounts during our lives and that when we no longer need them, we can use these savings to provide our family with payments for a long time and then support our favorite charities.”

Is a testamentary charitable remainder unitrust right for you? Retirement accounts, such as an IRA or 401(k), make great gifts to fund a testamentary charitable remainder unitrust. The trust will provide income to family while also benefiting charity. If you have questions about this gift option, please call the Legion’s Office of Charitable Giving at (317) 630-1225.

*Please note: The name and image above are representative of a typical donor and may or may not be an actual donor to the organization. Since benefits may differ depending on your personal circumstances, please consult with your legal, tax or financial adviser.

The American Legion’s Planned Giving program is a way of establishing your legacy of support for the organization while providing for your current financial needs. Learn more about the process, and the variety of charitable programs you can benefit, at legion.org/plannedgiving. Clicking on “Learn more” will bring up an “E-newsletter” button, where you can sign up for regular information from Planned Giving.