Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

charitable remainder trust (Charitable Remainder Irrevocable Unitrust)

Read a random definition: tanquam optimum maximum

A quick definition of charitable remainder trust (Charitable Remainder Irrevocable Unitrust):

A charitable remainder trust is a type of trust where someone gives a lot of money or valuable things to a trust that can't be changed. The money or things will go to charity when the person who gave them dies, but the person who gave them (or other people they choose) will get some of the money or profits from the trust while they are still alive. The government will let the person who gave the money or things take a big tax deduction when they give it to the trust, and they can use the money they save on taxes to buy an insurance policy that will give their children money when they die. This way, the person who gave the money or things can give to charity, get some money back, and still give their children a lot of money when they die. The only problem is that the money or things they gave to the trust can't be taken back or used for anything else.

A more thorough explanation:

A charitable remainder trust is a type of trust where a person (the donor) puts a large amount of money or assets into an irrevocable trust. The trust is managed by an independent trustee and the assets will go to a charity after the donor's death. However, during the donor's lifetime, they (or specific beneficiaries) will receive regular payments from the trust.

For example, let's say John wants to donate $1 million to a charity but also wants to receive regular payments during his lifetime. John can create a charitable remainder trust and put the $1 million into the trust. The trust will pay John a certain amount of money each year, and after John's death, the remaining assets will go to the charity.

The IRS allows a large tax deduction in the year the funds or assets are donated to the trust. The tax savings can be used to buy an insurance policy on the life of the donor, which will pay the donor's children the proceeds upon the donor's death. This way, the donor can make a gift to charity, receive a return on their money, and still arrange to make a large gift at death to their heirs.

However, the disadvantage of a charitable remainder trust is that the assets are permanently tied up or committed, meaning the donor cannot change their mind and take the assets back.

cestui que use | circuit courts

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
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.
LSD+ is ad-free, with DMs, discounts, case briefs & more.