Definitions for "RABBI TRUST"
A type of trust between an employee and an employer in which the employer makes contributions to an irrevocable trust. Upon the occurrence of a stipulated event (e.g., death, disability of the employee, or retirement), the trustee will make payments to the employee or his beneficiary. In order for the contributions to be tax deductible to the employer, funds from the trust must be distributed to the employee.
a trust arrangement in which deferred compensation plan assets are placed in an irrevocable trust out of the reach of the employer or any of the employer's successors, but are still subject to attachment by the general creditors of the employer
a "grantor" trust, and as such is treated as an asset of the employer
a viable alternative to totally unfunded arrangements because