Charitable remainder annuity trust

A charitable remainder annuity trust is a gifting arrangement under which a donor irrevocably transfers assets to a charitable trust that pays an annuity back to the donor or a third party beneficiary. Once the annuity has been terminated, the assets in the trust are transferred to a nonprofit entity. The trust is administered by a trustee until the trust is terminated. This arrangement usually has significant tax benefits for the donor.

Related Courses

Nonprofit Accounting