Rabbi Trust


DEFINITION of 'Rabbi Trust'

A trust created for the purpose of supporting the non-qualified benefit obligations of employers to their employees.

These trusts are sometimes referred to as "grantor trusts".


Called a Rabbi trust due to the first initial ruling made by the IRS on behalf of a synagogue, these forms of trusts create security for employees because the assets within the trust are typically outside the control of the employers and are irrevocable.

  1. Qualified Trust

    A tax-advantaged fiduciary relationship between an employer and ...
  2. Trust

    A fiduciary relationship in which one party, known as a trustor, ...
  3. Irrevocable Trust

    A trust that can't be modified or terminated without the permission ...
  4. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  5. Trustor

    An individual or organization that gifts funds or assets to others ...
  6. Beneficiary

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