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Simple English definitions for legal terms

charitable remainder trust

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A quick definition of charitable remainder trust:

A charitable remainder trust is a type of trust that allows someone to create a fund that generates income for a few years and then gives the remaining assets to a charity. This type of trust is popular because it allows the person creating the trust to still earn money while also receiving tax benefits. The trust gives the person or another chosen beneficiary income every year until the trust ends, and the trust cannot be changed once it is created. There are two types of charitable remainder trusts: annuity trusts, which distribute income based on a fixed percentage every year and end after the person dies, and unitrusts, which allow the income to be made based on a percentage of the assets and can vary based on the trust's performance for a specific amount of years. Unitrusts also allow the person creating the trust to contribute more money to the trust after it is created.

A more thorough explanation:

A charitable remainder trust is a type of trust that allows a person to create a trust that generates income for a certain number of years and then transfers the assets to a charity. This type of trust is popular because it allows the person to still receive income while also receiving tax benefits after creating the trust.

One example of a charitable remainder trust is a Charitable Remainder Annuity Trust (CRAT). This type of trust distributes income based on a fixed percentage every year and ends after the person dies. Another example is a Charitable Remainder Unitrust (CRUT), which allows the income to be made based on a percentage of the assets, which can vary based on the performance of the trust for a specific amount of years. CRUTs also allow the person to contribute more into the trust after its creation, unlike CRATs.

For example, John creates a CRUT and contributes $100,000 into the trust. The trust generates income of 5% per year, which is $5,000. John receives this income for 10 years, and then the remaining assets in the trust are transferred to a charity of his choice.

Another example is Sarah, who creates a CRAT and contributes $500,000 into the trust. The trust generates income of 4% per year, which is $20,000. Sarah receives this income for 20 years, and then the remaining assets in the trust are transferred to a charity of her choice.

These examples illustrate how a charitable remainder trust can provide income for a person while also allowing them to support a charity of their choice.

charitable remainder annuity trust | charitable remainder unitrust

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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