A tax-exempt trust that provides for the payment of a defined amount to designated beneficiaries for a term of years or their lives. After this period expires, the trust principal is transferred to a designated charitable remainderman. A charitable remainder trust must be either a charitable remainder annuity trust or a charitable remainder unitrust.
An arrangement in which property or money is donated to a charity, but the donor continues to use the property and/or receive income from it while living. The trust can be an annuity trust, which pays a fixed amount each year, or a unit trust, which pays an amount based on the value of assets held by the charity. see also charitable lead trust.
an arrangement in which property or money is donated to a trust, an annuity is retained by the Grantor for life and a charity receives the trust principal at death.
The general term used to describe a separate trust arrangement between the donor and the trustee of the donor's choosing, the terms of which must conform to the 1969 Tax Reform Act that established this charitable vehicle. This trust may be either an annuity trust or unitrust (see separate definitions). This trust must have a charitable intent, is irrevocable and receives a partial income tax deduction in the year of the gift. It also produces income from the property transfer; and at the end of the trust, the remaining principal is distributed to the charity (thus the remainder defines what type of charitable trust). This trust allows the donor to choose their trustee, payout rate, term (number of years, life or lives, or combination of the two), investment strategy, frequency of payment and who is the ultimate charitable beneficiary.
A trust in which individuals are named as beneficiaries to receive income for a period of time (as the lifetimes of the beneficiaries) after which the principal passes to charity Note: Charitable remainder trusts qualify for tax exemptions under section 664 of the Internal Revenue Code.
A donor creates and funds an irrevocable trust that provides income to beneficiaries for life or a term of years, after which time the remainder of the trust is distributed to the Foundation for the benefit of EMU.
An irrevocable charitable trust created when a donor transfers assets to a trust that will pay an annual income to one or more recipients named by the donor. The trust can run for the recipient's lifetime of for a specified number of years. Then the trust assets go to the nonprofit named by the donor in the trust document.
A landowner establishes a charitable remainder trust and through the trust give property to the land trust that, in turn, sells the property. The landowner receives a tax deduction for donating the property to the land trust, and the proceeds of the sale go to the landowner's trust. The landowner receives the earnings of the trust for his or her lifetime, and upon the landowner's death, the remaining money goes to the land trust. A charitable remainder trust can be combined with the donation of a conservation easement.
An irrevocable trust that distributes income to you or other named individual beneficiaries for life or a term of years and, when the trust ends, distributes the remaining property to the Church or charity.
The donor creates a trust and irrevocably funds it. The donor or spouse receives income for the term of the trust. AT the end of the term, the remaining principal goes to the Betty Ford Center. Minimum donation is $100,000.
A trust used to make large donations of property or money to a charity so the person making the gift or donation can obtain a tax advantage. In a charitable remainder trust, the donor reserves the right to use the trust property during his life or some other specified time period, and when the agreed period is over the property goes to the charity.
A gift plan that provides income to one or more beneficiaries for their lifetimes, a fixed term of not more than 20 years, or a combination of the two. Assets, usually cash, securities or real estate, are transferred to a trust which pays income to the beneficiaries for the term of the trust. When the trust term ends, the remainder in the trust passes to the charity. Can be established as a Charitable Remainder Annuity Trust (CRAT) with a fixed payout or as a Charitable Remainder Unitrust (CRUT) with a variable payout.
The donation of property or money to a charity, whereby the donor reserves the right to use the property or to receive income from it for a specified time. When the agreed-upon period is over, the property belongs to the charitable organization. The donor in turn receives various tax deductions and tax advantages. The most common CRTs are the charitable remainder annuity trust (CRAT) and the charitable remainder unit trust (CRUT).
trust under which a charitable beneficiary receives the remainder of the trust after payment of amounts over time to a non-charitable beneficiary. Often used to facilitate diversification of single low-basis stock holdings, and to maximize charitable gifts and deductions, while providing income payments to the grantor.
a trust fund invested to provide lifetime income to the donor and beneficiaries and a gift of the remaining principal to charity upon its expiration.
You donate property or money to a charity, reserving the right to use the property, or to receive income from it for a specified time (a number of years, the duration of your life, or the duration of your life and the life of a second person such as your spouse). When the agreed period is over, the property belongs to the charitable organization.
This type of estate planning arrangement is an irrevocable trust that creates two interests. The first is an income interest for the donor and/or one or more individuals designated by the donor for life or for a specified term. The second interest is a remainder interest in the trust assets that a charitable organization receives after the income interest ends. The donor receives a charitable contribution deduction for the present value of the remainder interest. Also, the trust itself is exempt from income tax.
A gift of cash, securities or other property to a trust that pays lifetime income to one or more beneficiaries, with the remainder of the assets passing to the foundation at the death of the last beneficiary. May be established as an annuity trust (CRAT) with a fixed annual payout, or a Unitrust (CRUT) with a variable annual payout.
An irrevocable trust that provides for the payment of a defined amount to designated beneficiaries. After this period is expired, the trust principle is transferred to the charity remainderman. A charitable remainder trust must be either a charitable remainder annuity trust or a charitable remainder unitrust.
A legal device used to set aside money or property of one person for the benefit of one or more persons or organizations. Specifically, this type of trust allows one to take a deduction for a gift to the trust in the year in which the trust is formed. One receives income from this type of trust for life and after one's death, the assets pass to the charity you designated.
The amount expected to be received by a charity from a charitable remainder trust at the death of the trustor.
A trust agreement whereby a donor relinquishes title to property, receiving a charitable deduction and the right to receive income of at least 5% per year. At the conclusion of the trust term the property must be distributed to qualifying charities. Primary forms of charitable trusts are annuity trusts and unitrusts.
A trust established for the benefit of a charitable organization under which the trustor receives income from an asset for a set number of years or for the trustor's lifetime. Upon the termination of the trust, the asset reverts to the charitable organization. The trustor receives a charitable contribution deduction in the year in which the trust is established, and the assets placed in the trust are exempt from capital gains tax.
You can establish a charitable trust in which you and/or others retain the right to receive income for life or a period of years, with the remainder to be distributed to charity. This trust is most valuable when funded with appreciated property because the sale of appreciated assets held in the trust is not subject to capital gains tax. You will receive a current charitable income tax deduction for the year in which the trust is established. With an annuity trust, you will receive a fixed payment. With a unitrust, you will receive payment based on the fair market value of the trust as calculated on an annual basis.
A trust in which the grantor reserves an income interest for life or a period of years, or gives such an income interest to another person, and provides that the remainder interest will pass to charity; the actuarial value of the charity's interest qualified for the estate tax charitable deduction.
A trust that provides for a specified distribution to one or more beneficiaries, at least one of which is not a charity, for life or for a term of years, with an irrevocable remainder interest to be held for the benefit of, or paid over to, charity.
The donation of an asset to a charity in which the donor reserves the right to use the property or receive income from it for a specified period of time, perhaps years or even lifetimes. When the agreed period is over, the property belongs to the charity.
Legal document set up with a charity, in which the charity pays you income for life. When you die, the money goes to the charity, tax-free.
A trust that pays current income to one or more non-charitable beneficiaries and later pays the remainder to charity. Special IRS rules apply to these trusts.
An arrangement whereby one or more persons receive an annual percentage or a fixed amount from a trust for their lives or for a term of years (not to exceed twenty), with the remainder payable to the charity after the death of the last income beneficiary or after the expiration of the specified term.
used in estate planning. This trust will save taxes for clients by gifting all or part of their assets to charity. However, this actual transfer will not occur until the death of the client. Thus, while the client is still alive, he or she will be able to earn money from the trust.
A legal device allowing the transfer of assets into a separately managed trust that will provide the donor and/or the donor's beneficiaries with payments for life or for a specific term of years. After the donor's death, the remaining assets (the "charitable remainder") pass to MIT. Read more about charitable remainder trusts.
A trust established in connection with a split-interest agreement, in which the donor or a third party beneficiary receives specified distributions during the agreement's term. Upon termination of the trust, a not-for-profit organization receives the assets remaining in the trust.
A trust which provides for a specified distribution, at least annually, to one or more beneficiaries, at least one of which is not a charity, for life or for term of years, with an irrevocable remainder interest to be paid to the charity.
An arrangement wherein the remainder interest goes to a legal charity upon the termination or failure of a prior interest.
A trust that allows you to leave assets to a charity and receive income and tax benefits at the same time. You can receive income from the trust for a specified period of time, after which all remaining assets are transferred to the charity.
A special kind of trust in which property is transferred to a trust. Income from the property is paid to the trust maker or persons designated by the trust maker for a specified period of years or for life, with any property remaining going to a qualified charity. There may be income tax, capital gains tax and estate tax advantages to the trust maker.
This trust lets people leave assets to a favored charity and receive a tax break but still retain income for life. This works best for people with a large appreciated asset, which, if sold, would generate large capital-gains taxes.
In return for the irrevocable transfer of cash or property to a trustee such as a Foundation or Charity, the donor receives a certain percentage or amount of the annual income from the property for life or for a specified term of years. The remainder interest in the property would then pass to the Foundation, for their benefit. The donor would be entitled to a federal income tax deduction for the value of that charitable remainder interest, which is based on the number and ages of life income beneficiaries and the percentage of payout agreed upon.
Irrevocable trust in which one or more individuals are paid income until the grantor's death, at which time the balance becomes tax free and is passed on to a designated charity.
An irrevocable trust that pays income to a designated person or persons until the Grantor's death, when the income is passed on to a designated charity. A charitable lead trust by contrast allows the charity to receive income during the grantor's life, and the remaining income to pass to designated family members upon the grantor's death.
In this case, you would transfer property to a trust and name a charity as the capital beneficiary. Until your death you would be the income beneficiary, you can use the property and receive any income it generates.