The Planning Need
If you are near or in retirement and have most of your liquid assets in savings and/or blue chip stocks, the Middlebury Unitrust can potentially double or triple your income and divesify your portfolio...best for those age 45-75 with low yielding investments.
The Solution
A Middlebury Unitrust is written to distribute a percentage (usually 5% - 7%) of the annualized value of the trust principal. Although the growth of principal can not be guaranteed, if the principal appreciates in value, the income recipients will receive more income. Should the principal grow, the income distributions would also grow. The amount of income the beneficiaries receive is based upon the annual value of the unitrust assets.
The Unitrust offers:
- An increase in your cash flow from your current stock dividends - potentially by 2-3 times right away
- A by-pass of immediate capital gains taxes at the time the trust is funded
- An income tax charitable deduction for a portion of the gift, which reduces your taxes now
- Professional trust management
The Unitrust attributes:
- You determine the payout fixed percentage (usually between 5% to 7%)
- Quarterly distributions beginning immediately
- A benefit to one or more beneficiaries for their lives, or a term of years not exceeding 20 years
- An income tax charitable deduction for a portion of the gift, and capital gains tax benefits
- $100,000 minimum