The Education Unitrust offers a different plan than the college annuity option for parents or grandparents with appreciated stock or land. When an appreciated asset is transferred into a special trust for four or more years, the donor receives a charitable deduction for income, gift and estate tax purposes, and may bypass capital gains taxes. Additional contributions may be made to the trust as desired. One option may allow immediate distribution to one or more students. For instance, the trust could be set up for a term of eight years for two students with the payments divided equally between them. Income from the trust is distributed at regular intervals. The student is able to pay for tuition, books and housing costs with the income from the trust. The trust would usually be designed to cover the probable length of time necessary for the student or students to be educated. The income from the trust is taxable for the student, but generally at a much lower tax bracket and may result in no tax payment. Certain limits and restrictions apply.