This type of trust is similar to an annuity trust but does not require the payment of a fixed amount each year to an income beneficiary:

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A unitrust is similar to an annuity trust in that it pays income to a beneficiary, but unlike an annuity trust, it does not require the payment of a fixed amount each year. Instead, the income paid is a percentage of the trust's assets, which allows for flexibility in the amount of income distributed.

This Type of Trust Is Similar to an Annuity Trust