Are there disadvantages to a NIMCRUT?

A potential disadvantage of this planning vehicle is that the trustee is generally restricted to investing the trust principal in one or more variable annuities. This is because the IRS has taken the position that the income earned by a variable annuity is not income for purposes of a Charitable Remainder Trust until the annuity company makes a distribution to the annuitant (the charitable trust). Because of this deferral of recognizing income, the variable annuity and the NIMCRUT are made for each other: The trust maker can therefore defer income until he or she requests it; at this time, all or part of the annuity can be used to provide income.