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
Agent with the authority from an insurance company to prepare and to place into business an insurance policy. ...
credit reflected on a ceding company's annual statement, showing reinsurance premiums ceded and losses recoverable from the reinsurer. ...
Coverage under the Homeowners Form-4 (HO-4) for the insured's personal property and loss of use against fire and/or lightning; vandalism and/or malicious mischief; windstorm and/or hail; ...
Addition to a business property insurance policy to cover loss of earnings, subject to a monthly limit, in the event that property of an insured is destroyed and a business cannot continue. ...
Coverage for a mortgagee where real or personal property, used as security for a loan, is damaged or destroyed. For example, a bank (mortgagee) lends money to an individual (mortgagor) who ...
Reinstatement of an insurance policy or bond to its original face amount (face of policy) after the payment by the insurer of a loss. The purpose of this type of coverage is to indemnify ...
Same as term Cargo Insurance: shipper's policies covering one cargo exposure or all cargo exposures by sea on all risks basis. Exclusions include war, nuclear disaster, wear and tear, ...
Coverage on cargo in overseas ships for war-caused liability excluded under standard ocean marine insurance. Not covered is cargo awaiting shipment on a wharf, or on ships after 15 days of ...
Accounting method used to reduce income taxes on distributions from qualified pension or retirement plans. Ten-year averaging was repealed by the tax reform act of 1986 but is still ...
Have a question or comment?
We're here to help.