A charitable remainder trust makes payments to one or more beneficiaries (usually the donor) for a certain period of time, after which the remainder of the funds in the trust are donated to a charity. A portion of the amount in this trust is tax deductible for the donor. This is considered a split interest arrangement, since funds are being sent to more than one party. This type of trust is designated as an irrevocable trust, since it cannot be altered without the permission of the beneficiary.
Depending on the terms of the arrangement, a charitable remainder trust may distribute a fixed amount each year, or it may distribute a fixed percentage of the remaining amount of the trust assets each year.