Charitable Remainder Trust (Charitable Remainder Irrevocable Unitrust) Definition and Legal Meaning

It is a tax saving trust where a person creates a trust and donates funds into it which is irrevocable by nature ie. cannot be taken back or terms cannot be changed. The whole idea is to save tax. Such funds or assets in that trust which generates income is disposed off to the beneficiary first throught the life time of the donor. Also at the time of contribution of such funds or asset into the trust, the donor gets huge tax deductions. Such deductions are so huge that the donor can take up a life insurance policy for himself so that his/her family gets huge amount of money on his death. On the death of the donor, the assets and funds of the trust is donated permanently for charity purpose.