Net Income Charitable Remainder Trust (NIMCRUT)
This variation of a unitrust provides that either the specified fixed percentage of the trust assets or the net income of the trust is distributed to the beneficiary, whichever is less.

This type of trust is often used to handle real estate as there is no fixed distribution requirement. The trustee then has time to arrange an orderly sale of the property.

A net income charitable remainder unitrust can be an excellent way to donate appreciated property and turn it into an income stream as well as acquire tax benefits A donor may also add a "makeup provision" to the trust. This allows a trust to distribute more than the fixed percentage of the assets in years where the trust's income exceeded the fixed percentage. In this manner, previous years shortages, when the trust was not able to earn the fixed percentage payment, may be made up.

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