Answers to Your Prospects' Questions: Flip Unitrusts

In most cases, yes. Remember that an asset like that may not be producing income, and so the unitrust's beneficiaries may receive little or nothing until a sale and re-investment into income-producing assets.

It depends on the age(s) of any children you name as income beneficiaries. Our interest in the unitrust must be at least 10% of the value of the assets you donate to it. This interest is calculated using the life expectancies of the income beneficiaries. The younger your children, the longer their life expectancy and the smaller the value of the charitable remainder. Even younger adult children may disqualify the trust.