charitable remainder trust

(redirected from Split Interest 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substantial funds or assets into an irrevocable trust (a trust in which the basic terms cannot be changed or the gift withdrawn) with an independent trustee, in which the assets are to go to charity on the death of the donor, but the donor (or specific beneficiaries) will receive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 ?
During fiscal 2015, Trinity Terrace was the beneficiary of a permanent distribution from a split interest trust of $27.2 million.
A qualified personal residence trust, also referred to as a "residence GRIT," is created by transferring a residence, or a second home, into a split interest trust for a specific period of time, typically between 10 and 20 years.
All statistics presented in this data release were based on a sample of Forms 5227, Split Interest Trust Information Return, filed for Reporting Year 1999.
The Flesher-Koch 2001 Split Interest Trust bought the house from Samuel and Frances Buchanan.
Administrative costs for a CRAT are more burdensome than for a CGA, since the charity is required to file certain annual returns such as Form 5227, Split Interest Trust Information Return, and Form 1041-A, U.S.
This study collected data from Reporting Year 1998, using Form 5227, Split Interest Trust Information Return.