Charitable Remainder Trust Calculator

Free charitable remainder trust (CRT) calculator. Estimate annual income, tax deduction, and remainder gift for charitable remainder annuity and unitrusts.

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.

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.

Legal professionals, business owners, and individuals alike benefit from transparent charitable remainder trust calculations when evaluating obligations, settlements, or compliance requirements. Bookmark this page and return whenever circumstances change so you always have current figures at your fingertips.

Why Use This Charitable Remainder Trust Calculator?

CRTs provide immediate income tax deductions, bypass capital gains on appreciated assets, generate ongoing income, and fulfill charitable goals — a powerful multi-benefit planning tool. Instant recalculation as you change inputs lets you model multiple scenarios quickly, giving you the data foundation needed for well-informed legal and financial decisions. No registration or login is required, and you can return to this page anytime to re-run calculations as laws, rates, or circumstances evolve. No registration or login is required, and you can return to this page anytime to re-run calculations as laws, rates, or circumstances evolve.

How to Use This Calculator

  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.

Formula

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

Example Calculation

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.

Tips & Best Practices

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.

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