Two primary types of UITs exist:
1 Equity trusts or Stock trusts—are generally designed to provide capital appreciation and/or income from dividends.
2 Bond trusts—are generally designed to pay monthly income, often in relatively consistent amounts, until the first bond in the trust matures. When this occurs, the funds from the redemption of the bond are distributed to investors as a return of principle. Bond trusts are typically appropriate fro investors who are seeking current income while maintaining the value of their capital investment.
Consulting with your Obsidian Financial Group advisor is the best way to determine whether you should add UITs to your investment portfolio and when is the best time to add this unique investment vehicle.