Charitable Remainder Trust (CRT) Payout Calculator
Calculate the annual payout from a CRAT or CRUT, the charitable remainder going to charity, your immediate income tax deduction, and the projected lifetime payout. Free, private CRT planning tool.
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What is a Charitable Remainder Trust (CRT)?
A Charitable Remainder Trust (CRT) is an irrevocable trust where you (the grantor) transfer assets, receive an annual income stream for life or a fixed term (up to 20 years), and at the end of the term the remaining trust assets pass to a qualified charity. Authorized under IRC Section 664, CRTs let high-net-worth donors convert highly appreciated assets into lifetime income, eliminate immediate capital gains tax, and capture a charitable income tax deduction in the contribution year.
There are two main CRT types: a CRAT (Charitable Remainder Annuity Trust) pays a fixed dollar amount each year (e.g., $60,000 on a $1M trust at 6%), and a CRUT (Charitable Remainder Unitrust) pays a fixed percentage of the trust's annually-revalued assets (so the payout rises and falls with investment returns). Both require: payout rate of 5-50%, minimum 10% projected charitable remainder, and that the remainder beneficiary be a 501(c)(3) public charity.
The capital gains tax elimination — the big win
A CRT is a tax-exempt entity (Section 664). When you transfer appreciated stock, real estate, or business interests to the CRT and the trust then sells those assets, the CRT pays zero capital gains tax. The donor pays tax only as income is distributed over time, and even then under the favorable Section 664(b) "4-tier" ordering rule: ordinary income first, then capital gains, then tax-exempt income, then return of principal.
Example: a donor contributes $1M of stock with $800k of long-term capital gain (basis $200k). If sold outside a CRT, the donor owes ~$190k in federal capital gains tax (23.8% combined LTCG + NIIT) — leaving $810k to invest. Inside a CRT, the full $1M is reinvested. Over a 20-year term at 6% growth and 6% payout, the donor receives roughly $1.2M in distributions and the charity receives ~$1M — versus only $1.6M total wealth created in the outside-CRT path.
The immediate income tax deduction
In the year you fund the CRT, you get an income tax deduction equal to the present value of the charitable remainder interest. The IRS calculates this using: trust value, payout rate, term (or beneficiary age), and the Section 7520 rate for the month of contribution. For a $1M CRAT paying 6% for the life of a 65-year-old at a 4.8% 7520 rate, the deduction is approximately $300,000-$400,000.
The deduction is limited to 30% of AGI for appreciated property contributions and 50-60% of AGI for cash. Unused deduction can be carried forward 5 years. High-bracket donors typically save $100,000-$150,000 in federal income tax in the contribution year alone.
How to use this calculator
Enter the trust funding amount, choose CRAT (fixed annuity) or CRUT (percentage of trust). Set the payout rate (5-50% allowed by IRS, typically 5-8% in practice). Choose "for life" with the beneficiary's age, or "fixed years" (max 20). Enter the current IRS Section 7520 rate (find this at IRS.gov — it changes monthly) and an expected trust growth rate.
The calculator returns: first-year payout, the immediate charitable deduction (present value of remainder), total cumulative payout over the term, and the projected remainder going to charity. The remainder estimate uses your growth assumption — if growth exceeds the payout rate, the trust grows and charity receives more; if growth lags the payout rate, the trust shrinks and charity receives less.
Common use cases: (1) Sell a concentrated stock position without taking a $200k+ tax hit. (2) Convert a low-basis rental property into lifetime income. (3) Reduce a taxable estate while supporting a favorite charity. CRTs are complex — use this calculator for planning, then engage an estate attorney + CPA to draft the trust and file Form 5227 annually.
Source: IRS Pub 1457 (actuarial values), IRC Section 664 (CRTs), IRS Section 7520 rate tables — updated May 2026. Consult an estate planning attorney before establishing a CRT.