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.
Frequently Asked Questions
What is a Charitable Remainder Unitrust (CRUT)?
A CRUT is an irrevocable trust that pays a fixed percentage of the trust's fair market value each year to the non-charitable beneficiary. At the end of the trust term, the remaining balance passes to the named charity. CRUTs are governed by IRC Section 664.
How is the CRUT annual payout calculated?
Each year, the trust assets are valued, and you receive the payout rate percentage applied to that year's value. If the trust grows, payouts increase. If it shrinks, payouts decrease. This differs from a CRAT, which pays a fixed dollar amount.
What is the minimum CRUT payout rate?
IRS regulations require a minimum payout rate of 5% and a maximum of 50% of the initial fair market value. The actuarial value of the charitable remainder must be at least 10% of the initial contribution. Source: IRC Section 664(d)(2).
Is a CRUT contribution tax-deductible?
Yes — you receive a partial charitable deduction equal to the present value of the remainder interest that will pass to charity. The deduction is limited to 30% of AGI for appreciated capital-gain property.
Can I put appreciated stock or real estate into a CRUT?
Yes — this is one of the main benefits. When you contribute appreciated property to a CRUT, the trust can sell it without immediate capital gains tax. The gain is spread out over distributions through the four-tier taxation rules.
What is the charitable remainder to charity?
The charitable remainder is whatever value remains in the CRUT after all payments to non-charitable beneficiaries have been made. It passes tax-free to the named charity. The IRS requires this amount to be at least 10% of the initial contribution.
Does this calculator account for taxes on distributions?
No — CRUT distributions are taxed under the four-tier system (ordinary income, capital gains, other income, trust corpus). The actual after-tax amount depends on the trust's income character. Consult a CPA for a tax-adjusted projection.