FAQ
Charitable Remainder Unitrusts (CRTs) Funded With Real Property
What is a Charitable Remainder Unitrust (CRUT)?
A CRUT is a tax-advantaged charitable gift vehicle that allows you to contribute assets — such as appreciated real estate — into a trust. The trust can sell the property
without immediate capital gains tax, reinvest the proceeds and provide you with income for a set period. The remaining assets ultimately support the University of Montana — advancing student success, faculty excellence and programs that strengthen communities across the state and beyond.
What is a “Flip” CRUT?
A Flip Charitable Remainder Unitrust is designed for illiquid assets like real estate. The trust “flips” from little or no income to regular payments after a triggering event — typically the sale of the property.
Why fund a CRUT with real estate?
This strategy can help you:
• Avoid immediate capital gains tax on sale of the property
• Convert real estate into a diversified portfolio
• Simplify finances by exiting property ownership
• Generate income while making a future gift to support the University of Montana
How does it replace rental property income?
Instead of variable rental income and ongoing management burdens, a CRUT provides:
• Income based on a fixed percentage of the trust’s value
• Greater predictability
• Freedom from maintenance, tenants and expenses
What are the main benefits?
A real estate-funded CRUT can:
• Reduce or defer taxes
• Eliminate management-intensive assets
• Provide lifetime (or term) income
• Diversify investments
• Create a lasting legacy at the University of Montana
What happens after the trust term ends?
The remaining trust assets are distributed to the University of Montana, where they can be directed to the areas you care about most.
Contact us to learn more about how a Charitable Remainder Unitrust funded with real estate can help you simplify your assets, generate income and create a lasting impact at the University of Montana.
Alison Schultz, Associate Vice President of Development
406-243-7449 | alison.schultz@supportum.org