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
Decision in the absence of a plaintiff or defendant at the specified court time. ...
Method of premium payment under which a temporary premium is charged based on projected loss experience. At the end of the year this premium is adjusted to reflect the actual loss ...
Type of charitable remainder trust (CRT) that pays interest income for life or for a specified term to a non charitable beneficiary. The remainder of the interest is received by a charity. ...
Frequency of death. ...
High severity loss that does not lend itself to accurate prediction and thus should be transferred by the individual or business to an insurance company. ...
Same as term Exclusions: provision in an insurance policy that indicates what is denied coverage. For example, common exclusions are: hazards deemed so catastrophic in nature that they are ...
Life insurance under which an insured receives the face value of a policy if the individual survives the endowment period. If the insured does not survive, a beneficiary receives the face ...
Coverage for property loss liability as the result of negligent acts and/or omissions of the insured that allows a spreading fire to damage others' property. Negligent acts and omissions ...
Person, business, or organization specified as the insured (s) in a property or liability insurance policy. In some instances, the policy provides broader coverage to persons other than ...
Have a question or comment?
We're here to help.