Question

Which typeis) of charicable remainder arrangements permit additional contributions after inception

1. CRAT
2. CRUT
3. Pooled Income Funds.

a. I only
b. 3 only
c. 1 and 2.
d. 2 and 3

Answer 1

The types of charitable remainder arrangements that permit additional contributions after inception are CRUT and Pooled Income Funds .

Step-by-step explanation:

The correct answer to which types of charitable remainder arrangements permit additional contributions after inception .

A Charitable Remainder Unitrust (CRUT) allows additional contributions at any time after the trust is established. This flexibility is one of the distinct features of a CRUT. In contrast, a Charitable Remainder Annuity Trust (CRAT) does not allow additional contributions once the trust has been created, since the annuity payment is determined at the outset and is based on the initial contribution only. Pooled Income Funds also permit new contributions by pooling the gifts of several donors into a single fund, with each donor receiving income based on their share of the fund. Both CRUTs and Pooled Income Funds offer ongoing opportunities for donors to contribute additional assets, making them distinct from CRATs in this regard.

In charitable remainder arrangements, the types of arrangements that permit additional contributions after inception are the Charitable Remainder Unitrust (CRUT) and the Pooled Income Fund. Both of these arrangements allow for additional contributions to be made by the donor after the initial contribution. The Charitable Remainder Annuity Trust (CRAT), on the other hand, does not permit additional contributions once it has been established.