A CRUT can be designed to operate for the life of one or more individuals, a term of up to 20 years, or a combination of life and term. In most cases, CRUTs are designed to pay income to the donor or donors for their lifetimes.
Trust Term Options
The Red Vertical Line indicates the end of the trust term
[1] Lives
The trust lasts for the lives of all beneficiaries, then terminates and the assets pass to charity.
[2] Term of Years
The trust lasts for a term of years written in the trust document, not to exceed 20 years.
[3] The Shorter of Lives of Terms of Years
The trust lasts for a term of years not to exceed 20 or the lives of the beneficiaries, whichever is the shorter of the two.
[4] The Longer of Lives or Term of Years
The trust lasts for a term of years not to exceed 20 or the lives of the beneficiaries, whichever is the longer of the two.
[5] Lives, Limited to a Term of Years following Other Lives
The trust pays income to a first set of life beneficiaries (the parents, as an example), then to a second set of beneficiaries (the children, as an example) for their lives or a term of years, the shorter of (as in Option [3])