charitable remainder trust (Charitable Remainder Irrevocable Unitrust)

Definition of "charitable remainder trust (Charitable Remainder Irrevocable Unitrust)"
  1. 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
How to use "charitable remainder trust (Charitable Remainder Irrevocable Unitrust)" in a sentence
  1. 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.
  2. To secure her children's inheritance and support her favorite charity, she set up a charitable remainder trust.
  3. By creating a charitable remainder trust, he was able to receive tax benefits and ensure a future donation to the university he attended.

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