Estate & Trusts calculator
Charitable Remainder Trust Calculator
What could a charitable remainder trust pay, and what may remain for charity?
What this tool helps you answer
What could a charitable remainder trust pay, and what may remain for charity?
A charitable remainder trust can pay a donor or another person for a set time and leave the remaining trust value to charity. This calculator compares fixed-payment and percentage-payment designs, projects the trust value, and clearly separates an economic estimate from the actuarial tax calculation required before a trust is created.
Transparent method
How the estimate works
See how the estimate is calculated
Apply the entered payout to the starting trust value and confirm that the percentage is within the federal 5% to 50% range and the term is no longer than 20 years.
Project annual trust growth after entered costs, make either the fixed CRAT payment or changing CRUT payment, and show selected payment and balance checkpoints.
For a term CRAT only, discount the fixed payments with the entered Section 7520 rate and compare the estimated charitable remainder with the federal 10% minimum.
What to check before acting on the result
How to read it
- Start with the payout and term screens before focusing on a tax deduction.
- Compare the projected remainder with the donor's income and charity goals under more than one return assumption.
- Bring the asset, beneficiary, payment timing, Section 7520 month, and state to an estate attorney and tax advisor.
Not included
- A final charitable income-tax, gift-tax, or estate-tax deduction
- The CRAT probability-of-exhaustion test or life-contingent actuarial factors
- Tax character of distributions under the four-tier rules
- Trust drafting, trustee selection, appraisals, state law, or investment advice
Common questions
Frequently asked questions
What is the difference between a CRAT and a CRUT?
A CRAT generally pays a fixed dollar amount. A CRUT generally pays a stated percentage of the trust value recalculated each year, so the payment can rise or fall.
How much must a charitable remainder trust pay?
Federal law generally requires a payout of at least 5% and no more than 50% of the relevant trust value.
How much must remain for charity?
The value of the charitable remainder interest must generally be at least 10% of the initial contribution. The final test uses IRS actuarial rules.
Does the calculator show my tax deduction?
It shows a term-CRAT present-value screen. A CRUT or life-based deduction needs the exact trust terms, IRS factors, and professional tax software.
Sources
Rules and references behind this calculator
Want the fine print? See sources, methods, and limits.