What types of investments are best purchased by my trustee inside of my Charitable Remainder Trust?

Usually the trustee of a Charitable Remainder Trust will want to invest in a diversified portfolio of securities which can be easily valued and for which there is a ready market. The trustee needs to be careful that there are no securities in the trust which will generate unrelated business taxable income and also that none of the securities are debt-financed. Securities should be carefully selected to generate the kind of income the income beneficiaries require in light of the four-tier income system we previously discussed. Mutual funds, stocks and bonds, municipal bonds, and variable and fixed annuities are the most common type of investment assets that are used within a Charitable Remainder Trust. If a trust has been established as a NIMCRUT, variable and fixed annuities provide a method of creating growth within the trust without generating current income.