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
States that preclude the placement of surplus lines with particular insurance companies. ...
In general, a civil wrong, other than breach of contract, for which a court will provide a remedy in the form of a suit for damages. Torts include negligent acts or omissions on the part of ...
Statement by an auditor or certified public accountant indicating if a company's financial statements fairly present its true financial condition. A statement of opinion may be unqualified, ...
Types of reinsurance instruments under which the amount of risk transferred is more limited than under traditional risk reinsurance instruments. The limitations on risk transfer take the ...
Addition to a property policy providing coverage for a specified amount. This endorsement is typically used for an unusual or valuable piece of property that does not fit standard ...
Instrument that uses noncombustible substances such as carbon dioxide to deprive a fire of oxygen, thereby extinguishing it. ...
Total amount of insurance coverage available for an insured. ...
Improvements or renovations to a leased business or residential property made by a tenant to meet its particular needs. Loss of use of these improvements as a result of damage is covered by ...
Model act written and published by the national association of insurance commissioners (naic) whose purpose it is to regulate brokers who control insurance companies. The act permits the ...
Have a question or comment?
We're here to help.