Learn how to reduce your income and estate tax, fast.

Get our tips on big-picture strategy and actionable tactics for startup equity, small businesses, crypto, real estate, and more.


Unitrust Amount

Unitrust Definition

A unitrust is a type of trust that allows the beneficiary to receive a fixed percentage of the trust’s corpus or value each year. The unitrust amount is the fixed percentage the beneficiary will receive each year, regardless of how the investments perform. Understanding this term is essential for planning and budgeting purposes.

For example, if a trust has an annual unitrust amount of 5%, the beneficiary will receive 5% of the trust’s value each year. This type of trust may help plan for future expenses, allowing for a predictable income stream.

The unitrust amount determines how much money from the assets in the trust the beneficiary will receive each year. This amount can be significant for estates or trusts that are larger and have a lot of money invested in them.

To know the unitrust amount, divide the annual distribution by the initial principal. This number will give you the percentage of the principal that the trust will pay out each year.

Next Steps

Knowing the unitrust amount when setting up a trust is essential, as this will help you plan for the future. Find out more about your unitrust with our Charitable Remainder Trust calculator.

Read more of the definitions our team at Valur prepared for you.

About Valur

We built a platform to give everyone access to the tax and wealth-building tools of the ultra-rich like Mark Zuckerberg and Phil Knight. We make it simple and seamless for our customers to take advantage of these hard-to-access tax-advantaged structures so you can build your wealth more efficiently at less than half the cost of competitors. From picking the best strategy to taking care of all the setup and ongoing overhead, we make it easy and have helped create more than $500m in wealth for our customers.