There are two types of charitable remainder trusts.
Charitable Remainder Annuity Trusts (CRAT)
A charitable remainder annuity trust pays income based on a percentage of the initial value of the trust. The annuity payment does not change during the term of the trust, so an annuity trust provides the certainty of a fixed amount of income each year, regardless of any fluctuations in the value of the trust assets. At the end of the trust period or at the death of the surviving beneficiary, the property remaining in the trust (the charitable remainder) is used for the Lord's work.
Charitable Remainder Unitrusts (CRUT)
A charitable remainder unitrust pays income based on a percentage of the net fair market value of the trust assets each year. Because a unitrust pays a variable amount of income based on the annual market value of the trust assets, it is designed to perform effectively against inflation. When the value of the trust principal increases, so will the donor's income. As with the CRAT, at the end of the trust period or at the death of the surviving beneficiary, the property remaining in the trust is used for the Lord's work.