Charitable Remainder Unit Trust (CRUT) Charitable Remainder Unit Trust (CRUT)
A type of charitable remainder trust that pays the trust's grantor a predetermined percentage of the trust's total assets each year, and donates the remaining assets to a selected charitable beneficiary after the grantor's death. The assets placed in the trust are immediately tax-deductible. They pass on to a tax-exempt beneficiary without further tax consequences. However, income taxes are typically incurred on income received from the trust.