Dictionary of Exit Planning Terms

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Charitable Remainder Trust (CRT)

A trust allowing a person to donate property security to charity, but continue to use the property and/or receive income from the securities while living. The annuity version pays a fixed dollar amount each year; the unit-trust form pays a variable dollar amount based on a fixed percentage of the fluctuating value of the assets given to the charity. A tax election is also allowed, based on the value of the assets donated.