charitable remainder trust

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charitable remainder trust (Charitable Remainder Irrevocable Unitrust)

n. a form of trust in which the donor (trustor or settlor) places substantial funds or assets into an irrevocable trust (a trust in which the basic terms cannot be changed or the gift withdrawn) with an independent trustee, in which the assets are to go to charity on the death of the donor, but the donor (or specific beneficiaries) will receive regular profits from the trust during the donor's lifetime. The IRS will allow a large deduction in the year the funds or assets are donated to the trust, and the tax savings can be used to buy an insurance policy on the life of the donor which will pay his/her children the proceeds upon the donor's death. Thus, the donor (trustor) can make the gift to charity, make a return on his/her money and still arrange to make a large gift at death to his/her heirs. The disadvantage is that the assets are permanently tied up or committed.

References in periodicals archive ?
This portion is also only completed for charitable remainder trusts.
Through tools such as a Unified Tax Credit, Irrevocable Trusts, and Charitable Remainder Trusts, you have more control over asset distribution and can potentially reduce taxes.
The seminar will discuss such topics as the Tax Act of 2002, charitable remainder trusts, and catastrophic health insurance.
The use of split interest trusts, such as charitable remainder trusts, still can be used to accomplish lifetime income tax and charitable planning objectives.
foundations and the federal regulations that apply to charitable remainder trusts.
Personal visits and aggressive distribution of publications have helped charities see an increase in charitable bequests and charitable remainder trusts.
Charitable remainder trusts, irrevocable life insurance trusts and investment management accounts also will be offered.
At RMM, clients who have charitable intent are counseled by president Richard Lee and his son, vice president Robert Lee, about Charitable Remainder Trusts (CRTs) and other giving tools.
Charitable remainder trusts are not subject to the tax, but distributions to noncharitable beneficiaries may be (Prop.
For over 20 years Renaissance has partnered with financial advisors, attorneys, accountants and others to establish more than 20,000 charitable gifts, including Charitable Remainder Trusts, Donor-Advised Funds and more.
The estate argued that the statute's phrase "in the same property" was sufficiently vague to seek its meaning in the provision's legislative history, which indicated it was meant to apply only to charitable remainder trusts.
The total net income of charitable remainder trusts, which is the sum of net ordinary income and net short- and long-term capital gain or loss, decreased by 54.

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