An Inflation Hedge for the Retired

Are you retired and fearing the impact of inflation? Did you know that a charitable remainder unitrust can help protect you from inflation?

When you create a unitrust, you decide what percentage of its value you would like as annual income. Every year thereafter, you will receive that fixed percentage of the unitrust's net fair market value, which is redetermined annually. After your lifetime (and/or that of another income beneficiary, if you wish), your favorite charitable organizations receives the remainder of the unitrust assets.

Example: You fund a 7 percent unitrust with $100,000. You receive a payout of $7,000 the first year. The next year, the unitrust assets are worth $110,000, so your checks total $7,700 (7% x $110,000). Of course, if at the time of the second valuation the unitrust is worth only $90,000, you are paid $6,300 (7% x $90,000).

With a unitrust, then, as its market value changes each year, your income changes. The results depend on the performance of the unitrust investments.

If you're more concerned about a declining market than about inflation, a charitable remainder annuity trust, in which you receive the same dollar amount each year for life, is better for you.

Whatever your choice, your greatest reward is the satisfaction you derive from an important contribution toward our critical future needs.

How to Find the Best Plan
Your age, estate size and income level must all be carefully considered in determining the gift that best fits your needs.

Please contact Mary Ludwig, Development Director at 712-732-5127, for more information.

The information on this site is not intended as legal, tax or investment advice. For such advice, please consult an attorney, tax professional or investment professional.

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