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Member
 
Group: Forum Members
Last Login: 5/2/2011 5:21:23 PM
Posts: 13,
Visits: 92
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The only assets of the CRUT are short term notes for real estate. It has always been hard to make the unitrust amount with the interest collected. Now most of the notes are not good and no income is generated.
The unitrust amount is calculated as a % of the FMV. The trust instructions direct that the installments should be paid from income then from principal. The document addresses the income issue (the lesser of the trust income for the year or the calculated unitrust amount) for the Initial Term only. There is no language in the trust that directs the trustee if there is no income, and principal that is difficult to distribute.
Please advise, thanks
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