Charitable Remainder Trust Calculator
Estimate income payouts and charitable deductions for Charitable Remainder Trusts. Compare CRAT (fixed annuity) vs CRUT (unitrust percentage) strategies.
Using IRS Section 7520 rate of 4.6% (April 2026). This calculator provides estimates only - consult a tax professional for actual planning.
Trust Details
Pays a fixed percentage of trust value (revalued annually)
IRS requires minimum 5%, maximum 50%
Current rate: 4.6% (April 2026). Rates published monthly by IRS.
Enter trust details to calculate payouts and charitable deductions.
CRAT vs CRUT Comparison
CRAT (Annuity Trust)
- +Fixed dollar payments provide income certainty
- +Larger charitable deduction in high 7520 rate environments
- +Simpler annual administration (no revaluation)
- -No additional contributions allowed
- -No inflation protection on payments
- -Risk of trust exhaustion if investments underperform
CRUT (Unitrust)
- +Payments grow with trust value (inflation hedge)
- +Additional contributions permitted
- +Trust cannot be exhausted (pays percentage of value)
- +NIMCRUT variant allows income deferral
- -Variable payments create income uncertainty
- -Annual trust valuation required
How Charitable Remainder Trusts Work
A Charitable Remainder Trust (CRT) is a tax-exempt irrevocable trust that allows donors to contribute assets, receive an income stream for life or a term of years, and ultimately benefit a charity with the remaining assets. CRTs offer immediate tax deductions, avoid capital gains on appreciated assets, and support charitable goals.
Key IRS Requirements
10% Remainder Test
The present value of the charity's remainder interest must be at least 10% of the initial fair market value of assets transferred to the trust. This test prevents CRTs from being structured primarily as income vehicles with minimal charitable benefit.
5-50% Payout Rule
The annual payout rate must be at least 5% but no more than 50% of the trust's initial value (CRAT) or current value (CRUT). This ensures meaningful income to beneficiaries while preserving remainder for charity.
Section 7520 Rate
The IRS publishes a Section 7520 rate monthly, calculated as 120% of the federal mid-term rate. This rate is used to calculate the present value of the charitable remainder interest and thus the donor's charitable deduction.
Common CRT Funding Assets
- Appreciated Securities: Avoid capital gains while converting to diversified income stream
- Real Estate: Convert illiquid property to income without immediate capital gains
- Business Interests: Facilitate succession planning while generating retirement income
- Cash: Immediate charitable deduction with tax-efficient income stream
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