Charitable Remainder Trust Calculator

A CRT is an irrevocable trust where you transfer appreciated assets, the trust pays you (or your designee) an annual income for life or a term up to 20 years, and whatever remains at termination goes to one or more charities. You get three benefits: (1) immediate income tax deduction for the present value of the charitable remainder, (2) the trust pays no capital gains tax when it sells the appreciated assets, and (3) an income stream during your lifetime.

A Charitable Remainder ANNUITY Trust (CRAT) pays a fixed dollar amount every year regardless of trust performance, set at trust creation. A Charitable Remainder UNI Trust (CRUT) pays a fixed PERCENTAGE of the trust's assets, revalued annually - so payments rise and fall with trust value. CRUTs allow additional contributions; CRATs do not. Most modern CRTs are CRUTs because of the inflation hedge.

The annual payout must be between 5% and 50% of the trust assets. The present value of the charitable remainder (at trust funding) must be at least 10% of the trust value - otherwise the trust fails IRS qualification. Higher payout rates and longer terms reduce the remainder value, so there's tension between maximizing income and qualifying.

Best fit: you have highly appreciated, low-yielding assets (concentrated stock, real estate, private business shares); you have charitable intent; you want lifetime income; you're in a high tax bracket and want a large current-year deduction. Worst fit: you need access to principal (you cannot reverse a CRT), you have no charitable intent, or your tax bracket is low. Establishment cost: $3,000-$15,000 plus annual administration.