Charitable Remainder Annuity Trust
Definition of "Charitable remainder annuity trust"
Special type of charitable remainder trust (CRT) under which a designated beneficiary (cannot be a charitable beneficiary) receives an annual fixed income. The grantor of the trust is allowed an income tax deduction of the amount of the present value of the charity's remainder interest as of the date the asset (s) is contributed to the trust. If trust income proves to be inadequate to meet the required payments to the beneficiary, the selling-off of a portion of the trust's principal or capital gains earned by the trust may be used to make up the difference. Any excess amount of income generated by the trust above that required to pay the beneficiary is reinvested into the trust. Once this trust has been created, additional assets cannot be transferred into the trust
Popular Insurance Terms
Those claims that arise when two or more property and casualty insurance companies have coverage on a loss. Which company then owes which portion of the claim must be determined. ...
Method of depreciating an asset in which its useful life is divided into an appropriate number of years (or other periods), the final salvage value is deducted, and the asset is written off ...
Actuarial method of crediting retirement benefits earned and the costs associated with these earned retirement benefits. An increment (unit) of benefit is credited for each year of ...
Government reinsurance program that provided coverage for U.S. properties during World War II. Private insurers shared the first layer of coverage, with the government providing ...
Additions of new entrants into an employee benefit insurance plan. ...
Coverage through an endorsement to the personal automobile policy (pap) to extend its protection against accidents within a 25 mile radius of the U.S. border. This coverage is excess over ...
Organization of home service debit life insurance companies and combination companies. ...
Projected percentage of the earned premiums that will be required by the insurance company to pay for the incurred losses plus the loss adjustment expense. ...
Confirmation by an insurance company of the acts of its agent, regardless of whether or not these acts were committed within the limit of authority granted the agent by the company. By so ...
Have a question or comment?
We're here to help.