A trust that provides income and tax benefits to the grantor (or his/her beneficiary) for a fixed period, or for life. The balance is then distributed to a predesignated charity.
an irrevocable trust that pays income to one or more individual beneficiaries for life or a term of years, and then distributes the remaining assets to one or more charities.
An arrangement that provides a lifetime income and a charitable income tax deduction. The donor selects the payout rate, usually between 5 and 7 percent. The higher the payout rate, the lower the charitable income tax deduction. The donor receives income every year for life or for a predetermined time period.