CRU

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Related to CRUT: crutch

CRU

abbreviation for COMPENSATION RECOVERY UNIT.
References in periodicals archive ?
In Letter Ruling 201714003, the IRS ruled that a trust was not a CRUT because it did not function exclusively as a CRT.
Consequently, Schaefer's estate was required to use an annual distribution amount of 11% (for CRUT 1) or 10% (for CRUT 2) of the net FMV of the trust assets when valuing the remainder interests.
6) In an effort to assist taxpayers and drafters of CRTs (and consequently reduce the administrative burden of technically deficient trusts that were clearly intended to be CRTs), beginning in 1989, the Internal Revenue Service promulgated sample trust language (most recently updated in 2003 and 2005) for CRATs and CRUTs.
CRUTs are better suited for illiquid assets, but you'll need expert advice if your client wants to transfer non-financial assets to a trust.
In comparison, CRATs (15 years) and CRUTs (14 years) terminating in Filing Year 2012 had similar average lifespans perhaps because both types of charitable remainder trusts are likely to terminate at the death of a noncharitable beneficiary.
This technique begins with a NIMCRUT, or a NICRUT (similar to a NIMCRUT but without the makeup provisions), that is converted to a standard CRUT upon the occurrence of an approved triggering event.
For transfers to a trust made after May 17, 1997, regulations exempt CRUTs from IRC Section 2702 only if the trust provides for simple unitrust payments, or in the case of a CRUT with a lesser of trust income or the unitrust amount provision, the grantor and/or the grantor's spouse (who is a citizen of the U.
For this reason, younger donors often prefer the flexible unitrust payment that is available with a CRUT, as opposed to the fixed payment guaranteed by a CRAT.
Since a unitrust is a variable annuity, a CRUT may provide a hedge against this.
The charitable gift to a CRUT would result in an income tax savings of $148,608 (0.
While a CRUT is a special type of CRT, a net income make-up CRUT, or NIMCRUT, is further specialized to allow for maximum income deferral opportunities.
There are several variations of the trust to meet individual goals and needs, but the two most popular are a charitable remainder unitrust, commonly referred to as a CRUT, and a charitable remainder annuity trust, known as a CRAT.