Charitable Remainder Trust


DEFINITION of 'Charitable Remainder Trust'

A tax-exempt irrevocable trust designed to reduce the taxable income of individuals by first dispersing income to the beneficiaries of the trust for a specified period of time and then donating the remainder of the trust to the designated charity.

BREAKING DOWN 'Charitable Remainder Trust'

The whole idea of a charitable remainder trust is to reduce taxes. This is done by first donating assets into the trust and then having it pay the beneficiary for a stated period of time. Once this time-frame expires, the remainder of the estate is transferred to the charities deemed as beneficiaries.

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  2. Charitable Lead Trust

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  3. Estate Tax

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  4. Beneficiary

    Anybody who gains an advantage and/or profits from something. ...
  5. Estate

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  6. Irrevocable Trust

    A trust that can't be modified or terminated without the permission ...
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