NIM-CRUT

A NIM-CRUT is a "net income make-up" CRUT. A CRUT is a Charitable Remainder Uni-Trust. This is a special form of a CRT which is a charitable remainder trust. This is a type of trust to which you can contribute assts, even highly appreciated assets. The charitable trust, or CRT, can sell those assets and not pay capital gains tax. The proceeds can be reinvested and used to pay you (and your spouse or another designated person, but paying someone other than a spouse raises gift tax issues) for a specified period of years or, more commonly, for life. In a CRUT instead of that annaul (or more frequent) payment being a fixed dollar amount each year, it is based on a percentage of the value of the assets each year. Now for the NIM part. If you transfer appreciated raw land to a CRUT it may not produce any income for years. So the trust is structured so that it doesn't make any payouts to you until the land is sold (FLIP-NIM-CRUT). When the land is sold and the trust is able to invest the proceeds in income producing assets it can then pay you. The NIM part is that the trust can be structured to make up all the annual payments it should have made to you in the years before the propery was sold. This gives you the ability to get even greater payments in later years. If you time the sale of the assets that the CRT holds to your retirement, you can in some sense structure this type of charitable trust to function like a retirement plan. When properly structured you should qualify for an income tax charitable contribution deductino.