charitable remainder trust (Charitable Remainder Irrevocable Unitrust)
- A type of trust where a donor assigns substantial assets into a trust which cannot be modified or retracted. The assets are transferred to a charity upon the donor's death, but the donor or named beneficiaries receive regular profits from the trust throughout the donor's lifetime. The donor can take a large tax deduction in the year the assets are assigned to the trust, use the savings to purchase a life insurance policy, and arrange a significant gift to be given to their heirs upon their death. However, the assets are permanently tied up
- The wealthy businessman established a charitable remainder trust to benefit the local hospital after his death, while also providing him with income during his lifetime.
- To secure her children's inheritance and support her favorite charity, she set up a charitable remainder trust.
- By creating a charitable remainder trust, he was able to receive tax benefits and ensure a future donation to the university he attended.