Charitable Remainder Trust (CRUT) Payout Calculator
Model annual CRUT payouts over a 1–30 year trust term, see your total income, and estimate the remainder that passes to charity at the end.
How a Charitable Remainder Unitrust (CRUT) Works
A CRUT is an irrevocable trust governed by IRC Section 664 that distributes a fixed percentage (5%–50%) of the trust's annually revalued fair market value to the income beneficiary — typically the donor or a family member. At the end of the trust term (or at the beneficiary's death), the remaining trust assets pass to one or more named charities. The donor receives a partial income tax deduction in the year of funding, equal to the actuarial present value of the charitable remainder interest.
Unlike a Charitable Remainder Annuity Trust (CRAT), a CRUT payout fluctuates with the trust's investment value — rising in good years, falling in down years. This protects the charity's remainder from inflation but also means the income beneficiary bears some investment risk. CRUTs are popular estate-planning tools for people with highly appreciated, low-basis assets such as stock or real estate. By transferring these assets into a CRUT, the trust can sell them without immediate capital gains tax. Source: IRS Publication 3079, IRC Section 664. Last updated: May 2026.
CRUT vs CRAT: Which Is Right for You?
| Feature | CRUT | CRAT |
|---|---|---|
| Payout type | % of annual FMV (varies) | Fixed dollar amount |
| Additional contributions | Allowed | Not allowed |
| Inflation protection | Yes (payouts rise with growth) | No (fixed dollar erodes) |
| Income predictability | Lower | Higher |
| Min payout rate | 5% of annual FMV | 5% of initial FMV |
| Risk to charity remainder | Lower (payout ≤ growth) | Higher (fixed drain) |
Key CRUT Planning Considerations
The IRS Section 7520 rate (published monthly) affects the charitable deduction calculation — a higher rate increases the deduction. The charitable remainder must equal at least 10% of the initial contribution (actuarially), otherwise the trust fails the CRUT test. Trust term is typically set to a fixed number of years (1–20) or the lifetime of up to two beneficiaries. For maximum tax benefit, fund a CRUT in a year with high income to maximize the deduction offset. Consult an estate planning attorney who specializes in charitable trusts and a CPA to model the full tax picture before funding. Source: americanbar.org, IRS.gov. Last updated: May 2026.