Charitable Remainder Trust (crt)
Trust to which a donor transfers assets and that distributes income to finance a predetermined situation. After the trust expires, any remaining assets are donated to the qualified charity that was previously designated as the remainder beneficiary (beneficiary of trust). In the year of transfer, the donor receives a tax deduction for the future value of the assets that were transferred to the trust. Thus, under this type of trust, the donor (person who creates the trust) simply makes an irrevocable transfer of an asset (s) to a trustee. According to the trust agreement, the trustee must:
- invest the asset contributed to the trust;
- pay a predetermined annual income to the donor and/or another designated beneficiary for life or stipulated number of years;
- distribute the asset (s) to the charity, either when the donor dies or when a specific designated income beneficiary dies.
Popular Insurance Terms
Property insurance premium rate that is applicable to a single, particular piece of property. ...
Present value of a series of payments such that the first payment is due immediately, the second payment one period from hence, the third payment two periods hence, and so forth. The ...
Length of time required to amortize the excess expenses of acquiring a given group of life insurance policies. In acquiring a policy, a life insurance company may incur expenses (such as ...
Coverage that does not put a dollar value on a hull or cargo that is insured. A valued marine policy puts a specific value on the insured property. With unvalued property, the value is ...
Type of individual retirement account (IRA) allowed by the employee retirement income security act of 1974 (ERISA), in which contributions are paid into the bank's interest-bearing ...
Term life insurance, usually purchased at an airport by an airplane passenger. It provides a death payment to the passenger's beneficiary in the event of a fatal accident on one or more ...
Organization that develops and publishes educational material and administers national examinations in supervisory management, general insurance, claims, management, risk management, ...
Type of pension in which benefits may vary depending on the investment performance of the pension plan assets. Contributions are made to fund a target benefit, such as 35% of compensation, ...
Measure of policyholder interest in a variable annuity policy prior to the annuity date. This measure is similar to a unit in a mutual fund. ...
Have a question or comment?
We're here to help.