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A CRUT is a Charitable Remainder Unitrust, which usually has as its first beneficiary the person who set up the CRUT (the settlor), and which may (but is not obliged to) have as a second beneficiary a person who receives the income after the death of the settlor. Neither of these two can be a charitable institution. Not all CRUTS are set up with a second beneficiary, and for those that do, there is a minimum age for that person. After the death of both beneficiaries (if there are two), the trust goes to a charitable institution. Possibly not all CRUTs can be set up this way, but as the second beneficiary of one such CRUT, I know that some can.

I also have a different CRUT of which I am the settlor. When I set it up, I named a second (the term may be residual) beneficiary. I am thinking about changing or even eliminating the second, for reasons that are not pertinent to this question. The ultimate recipient, the charity, would, of course remain the same.

Can I do this? And, if I can, is the tax benefit to me changed if the age of the new second is different from that of the former second? The tax point is of less importance to me.

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