Charitable Remainder Unitrust Calculator
Calculate your CRUT benefits, tax deductions, and annual income payments
Input Parameters
Calculation Results
Payment Schedule
| Year | Fund Value | Annual Payment | Cumulative Payments |
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Tax Advantages
Receive an immediate income tax deduction for the present value of the charitable remainder. Capital gains taxes are deferred until distributions are received, potentially reducing your overall tax burden.
Income Stream
Generate a steady income stream for life or a specified term. Payments may increase over time if the trust’s investments perform well, providing potential protection against inflation.
Charitable Impact
Support your favorite charitable causes while potentially leaving a larger legacy than through direct giving. The remainder interest passes to charity at the trust’s termination.
How Charitable Remainder Unitrusts Work
Structure and Operation
A Charitable Remainder Unitrust (CRUT) is an irrevocable trust that provides income to beneficiaries for a specified period, with the remainder going to charity. Unlike annuity trusts, unitrusts pay a fixed percentage of the trust’s value, revalued annually.
Key Requirements
- Minimum payout rate of 5% and maximum of 50% annually
- Trust term cannot exceed 20 years or the lifetime of beneficiaries
- Charitable remainder must be at least 10% of contributed assets
- Assets must be revalued annually for payment calculations
- All beneficiaries must be living when the trust is established
Tax Implications
The trust is exempt from federal income tax, allowing assets to grow tax-free within the trust. Beneficiaries pay taxes on distributions according to a four-tier system: ordinary income, capital gains, tax-exempt income, and return of principal.
Investment Considerations
CRUT assets can be invested for growth since payments adjust with the trust’s value. This makes unitrusts particularly suitable for younger beneficiaries or those seeking inflation protection through potentially increasing payments.
Variations of CRUTs
Net Income Makeup CRUT (NIMCRUT): Pays the lesser of the stated percentage or actual income, with makeup provisions for shortfalls in later years when income exceeds the stated percentage.
Flip CRUT: Begins as a NIMCRUT and converts to a standard CRUT upon a triggering event, such as the sale of illiquid assets or retirement of the income beneficiary.
Estate Planning Benefits
CRUTs remove assets from your taxable estate while providing income during your lifetime. They’re particularly effective for highly appreciated assets, allowing you to diversify investments without immediate capital gains tax consequences.