A unitrust can be a good solution for reconciling difficult competing financial interests and goals. It is important to understand that there are two types of beneficiaries, income and remainder beneficiaries, who both have competing goals when it comes to most Trusts. Setting up a unitrust can help avoid this conflict between the two types of beneficiaries. Instead of splitting the income from the principle, a unitrust distributes assets to beneficiaries based off a percentage of trusts total fair market value (FMV). This column lists out a number of issues that a person should consider before investing in a unitrust. This unique investment strategy can be appropriate for the right people, so it is a good idea to speak with a professional advisor.
See Martin M. Shenkman, Unitrusts To the Rescue, Wealth Management, July 1, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
