If you're hung up on estate trusts, this episode of BIF Bites podcast is for you. Jerry Mee, CFP® is sharing the easiest way to keep them straight and what you need to remember in less than 10 minutes.
Understanding Estate Trust Acronyms
If you're more of a visual learner or need a handy resource, we're outlining the difference below in this handy chart.
| Estate Trust | Who Is the Trust For: Charity or Grantor? | What Does the Beneficiary Receive: Remainder (lump sum) or Lead (stream of payments)? | Fixed or Flexible: Annuity or Unitrust |
| CRAT | Charity | Remainder | Annuity |
| CRUT | Charity | Remainder | Unitrust |
| CLAT | Charity | Lead | Annuity |
| CLUT | Charity | Lead | Unitrust |
| GRAT | Grantor | Remainder | Annuity |
| GRUT | Grantor | Remainder | Unitrust |
| GLAT | Grantor | Lead | Annuity |
| GRUT | Grantor | Lead | Unitrust |
So, if you set up a CRAT, a charity will receive a lump sum in a fixed trust. Pretty easy, right? Well, mostly.
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