Free charitable remainder trust (CRT) calculator. Estimate annual income, tax deduction, and remainder gift for charitable remainder annuity and unitrusts.
A charitable remainder trust (CRT) allows you to transfer assets to an irrevocable trust that pays income to you (or other beneficiaries) for a set period, with the remainder going to charity. CRTs offer a combination of income, tax deductions, and charitable giving.
This page is a planning worksheet. It compares CRAT and CRUT scenarios using the assumptions you enter, but it does not determine whether a specific trust qualifies or what deduction the IRS will allow.
There are two main types: a Charitable Remainder Annuity Trust (CRAT) pays a fixed annuity amount, while a Charitable Remainder Unitrust (CRUT) pays a fixed percentage of trust assets revalued annually. Payout rates must be at least 5% and no more than 50%, and the charity must receive at least 10% of the initial contribution.
This calculator estimates annual income payments, approximate charitable deduction, and the projected remainder gift.
CRTs can combine income, tax-deduction, and charitable-planning objectives, but the tradeoffs are easier to compare when income, payout rate, and remainder assumptions are shown separately. This worksheet is for planning only.
CRAT Annual Payout = Contribution × Payout Rate (fixed each year) CRUT Annual Payout = Current Trust Assets × Payout Rate (varies annually) Charitable Deduction ≈ Contribution − Present Value of Income Stream
Result: $30,000/year
A $500,000 CRAT at 6% pays $30,000 annually for 20 years ($600,000 total income). The estimated charitable deduction is approximately $168,000. The remainder to charity depends on investment performance.
A CRAT pays a fixed dollar amount each year, providing predictable income regardless of investment performance. A CRUT pays a fixed percentage of annually revalued assets, so income rises in good markets and falls in bad ones. CRUTs are more flexible and can accept additional contributions.
CRTs provide: immediate income tax deduction, avoidance of capital gains tax on contributed appreciated assets, tax-free growth inside the trust, and estate tax reduction by removing assets from the taxable estate.
CRTs are ideal for individuals with: highly appreciated assets they want to sell, a desire for ongoing income, charitable inclinations, and a need to reduce current income taxes. Minimum contribution is typically $100,000–$250,000 to justify setup costs.
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This page is a planning worksheet, not a tax determination or trust-formation opinion. It applies the payout rate, term, and contribution inputs to estimate income and remainder value under the CRT structure you select. The worksheet is meant to compare CRAT and CRUT scenarios and should not be treated as an IRS ruling or a legal conclusion about trust validity.
The IRS requires a minimum annual payout of 5% of initial value (CRAT) or annual revalued assets (CRUT). The maximum is 50%. Additionally, the present value of the charitable remainder must be at least 10% of the initial contribution.
Yes. The donor is commonly the income beneficiary (or the donor and spouse). You can also name other individuals. Non-charitable income beneficiaries receive payments for the trust term or their lifetime.
Cash, publicly traded securities, real estate, and closely held business interests are common contributions. Highly appreciated assets provide the greatest benefit since the trust can sell them without immediate capital gains tax.
The deduction equals the contribution minus the present value of the income interest, calculated using IRS-published discount rates (Section 7520 rates). The deduction is limited to 30% of AGI for most contributions (20% for real estate).
The remaining trust assets are distributed to the designated charitable organization(s). If the charity no longer exists, successor charities named in the trust document receive the assets.
Most CRT documents allow the donor to change the charitable remainder beneficiary. However, the trust terms (payout rate, income beneficiary, term) cannot be changed once established.