Charitable Remainder Trust Calculator

About the Charitable Remainder Trust Calculator

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.

When This Page Helps

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.

How to Use the Inputs

1. Enter the value of assets contributed to the CRT.
2. Select CRAT (fixed annuity) or CRUT (percentage unitrust).
3. Enter the annual payout rate (5-50%).
4. Enter the trust term in years or select for lifetime.
5. Review estimated income, deduction, and charitable remainder.

Example Calculation

Tips & Best Practices

• CRTs work best with highly appreciated assets — avoid capital gains tax upon contribution.
• The 10% remainder rule means high payout rates require longer terms.
• CRTs are irrevocable — you cannot change your mind after funding.
• CRUT payouts fluctuate with investment performance; CRAT payouts are fixed.
• Name a charitable organization or donor-advised fund as the remainder beneficiary.
• CRT income is taxed in a specific order: ordinary income, capital gains, tax-exempt, then return of principal.
• Consult a tax advisor — CRT rules are complex and the deduction calculation uses IRS discount rates.

CRAT vs. CRUT

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.

Tax Benefits of CRTs

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.

Who Should Consider a CRT?

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.

Frequently Asked Questions

• What is the minimum CRT payout rate?

  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.

• Can I be the income beneficiary?

  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.

• What assets can I contribute to a CRT?

  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.

• How is the charitable deduction calculated?

  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).

• What happens when the CRT term ends?

  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.

• Can I change the charitable beneficiary?

  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.