Rabbi Trust
A trust created for the purpose of supporting the non-qualified benefit obligations of employers to their employees.
These trusts are sometimes referred to as "grantor trusts". Investopedia Says:
Called a Rabbi trust due to the first initial ruling made by the IRS on behalf of a synagogue, these forms of trusts create security for employees because the assets within the trust are typically outside the control of the employers and are irrevocable. Related Terms:
Beneficiary
Grantor
Internal Revenue Service - IRS
Irrevocable Trust
Non-Qualified Deferred Compensation - NQDC
Trust |