CHARITABLE REMAINDER UNITRUSTCHARITABLE REMAINDER UNITRUST

What is a Charitable Remainder Unitrust?

Through a charitable remainder unitrust at the Lutheran Community Foundation (LCF), the donor’s gift creates a trust that makes regular payments based on a percent of the trust’s assets. These payments, which can be made to the donor or other named income recipient, can be for life, a term of up to 20 years or both. The amount remaining in the trust at the end of the trust’s term benefits charities recommended by the donor. Typically, the LCF acts as trustee for trusts established at the LCF, and in this capacity it assumes responsibility for administering all aspects of the trust.

The gift minimum is $100,000 for cash or publicly traded securities, and $200,000 for real estate or closely held stock. The donor can make multiple gifts. (If a gift of real estate is being considered, contact the LCF for additional information regarding FLIP unitrusts.)

Target Audience

  • Lifetime unitrust donors are typically 50 or older, but may be younger for a term of years trust.
  • Clients interested in additional income.
  • Younger clients (50+) who can withstand market fluctuations.
  • Clients with significant assets.
  • Clients interested in converting an existing asset into a gift that provides a stream of ongoing income.
  • Clients who wish to give appreciated stock and/or real estate, and bypass associated gains.
  • Clients who may wish to make additional gifts at a later date.
  • Clients who have maxed out qualified retirement plan contributions, but still need additional retirement income.
  • Clients with stock who are seeking ongoing income for longterm care or wealth replacement insurance premiums.

Tax and Financial Benefits of Creating a Charitable Remainder Unitrust

  • Your client receives regular payments for life, term of years, or both.
  • The donor receives a charitable income tax deduction in the year of the gift.
  • For gifts of cash, the annual deduction limit is 50% of the donor’s AGI.
  • For gifts of long-term appreciated securities, the annual deduction limit is 30% of the donor’s AGI.
  • Unused charitable deductions may be carried over an additional 5 years.
  • The unitrust sells appreciated assets tax-free – 100% of the gift is reinvested to produce income.

Benefits to You, the Financial Representative


Helping your clients give through the LCF not only simplifies your work, you’re also compensated for your efforts. Charitable gifts that come to the LCF through the work of Financial Representatives are invested in Thrivent investment products or American Funds, and you receive the corresponding compensation from those companies. Find out more about compensation for Financial Representatives.

You don’t need any special qualifications to facilitate gifts to the LCF, and we support you with the tools and information necessary to complete your client’s gift.

More about Charitable Remainder Unitrusts

Unitrust payout rate. In determining a payout rate, the LCF looks to various factors, including the current economy, the prevailing IRS discount rate and the age of the trust income beneficiaries. Once the percentage has been set in the signed trust document, it cannot be changed. The variable payment rate is calculated annually, based on the set percent of the overall value of the trust’s assets.

Payment recipients. Payments can be paid to the donor, a relative or friend, and are taxable as income. There may be estate/gift tax consequences if someone other than the donor or the donor’s spouse is named as an income recipient.

How to Establish a Charitable Remainder Unitrust at the LCF

  1. Request a personalized illustration for your client using our request form.
  2. The Foundation sends you an illustration packet to review with your client.
  3. If your client wishes to proceed and establish a unitrust, complete and return the Charitable Remainder Trust Application and Fund Workbook included in the illustration packet.
    • If the client is giving cash, please do not send any money at this time.
    • If the client wishes to give stock, include copies of either the stock certificates or the most recent brokerage statement. LCF will contact you with specific instructions on how to transfer the stock.
  4. To ensure prompt and accurate compensation from Thrivent, complete the FR compensation form.

Resources to Support Your Work


You may also order these materials online, using our Request Materials form.

Through charitable remainder unitrusts, Thrivent Financial Representatives provided a charitable solution to hundreds of LCF donors – in some cases providing an income used to pay long-term care and life insurance premiums. For more information about charitable remainder trusts and other giving options available through the LCF, please call 800/365-4172.