Charitable Remainder Unitrust (CRUT) Calculator

Model a Charitable Remainder Unitrust with variable annual payments based on trust value. Enter your funding amount, payout rate, term, Section 7520 rate, growth rate, and tax bracket to see your deduction, payments, tax savings, and projected remainder.

Created by Luis GonzalezLast updated: 2026-06-17

How to Use This Calculator

1
Enter Initial Trust Value
Input the initial dollar amount used to fund the Charitable Remainder Unitrust (CRUT).
2
Specify Annual Payment Percentage to Beneficiary
Enter the percentage of the trust's value that will be paid annually to the beneficiary. This value is re-calculated each year.
3
Set Trust Term (Years)
Input the number of years the trust will make payments to the beneficiary. For a term-of-years CRUT, the maximum is typically 20 years.
4
Enter Discount Rate
Input the discount rate as a percentage, used to calculate the present value of future payments. This is often the IRS Section 7520 rate.
5
Specify Annual Growth Rate of Trust Assets (Optional)
If applicable, enter the expected annual growth rate of the trust assets as a percentage. This helps project the trust's future value.
6
Review Your Results
The calculator will display the present value of payments to the beneficiary, the charitable remainder value, the future value of the trust, and the final trust value after payments.

Example Calculation

A donor establishes a CRUT with $500,000, paying 5% of its value annually for 10 years, with a 4% discount rate and 3% growth.

Initial Trust Value ($)

500,000

Annual Payment Percentage to Beneficiary (%)

Trust Term (Years) (years)

Discount Rate (%)

Annual Growth Rate of Trust Assets (Optional) (%)

Option

years

Results

$194,998.23

Tips

Benefit from Variable Income

CRUTs provide a variable income stream that can grow if the trust assets perform well, offering potential inflation protection for beneficiaries. This differs from the fixed payments of a CRAT.

Fund with Appreciated Assets

Like CRATs, CRUTs are excellent vehicles for donating highly appreciated assets. You can avoid capital gains tax on the transfer and diversify the portfolio within the trust without immediate tax consequences.

Understand the 'Net Income with Make-up Provision' (NIMCRUT)

Consider a NIMCRUT if you don't need immediate income. It pays the lesser of the unitrust amount or the trust's net income, with a provision to make up shortfalls in later years when income exceeds the unitrust amount, often used in retirement planning.

Strategic Philanthropy with the Charitable Remainder Unitrust (CRUT) Calculator

The Charitable Remainder Unitrust (CRUT) Calculator is an essential tool for sophisticated financial and philanthropic planning.

It helps donors estimate the present value of payments to beneficiaries, the immediate charitable remainder value, and the projected future value of the trust.

For example, a CRUT funded with $500,000, paying 5% of its value annually for 10 years with a 4% discount rate and 3% growth, calculates the present value of payments to the beneficiary at approximately $194,998.23.

This flexibility makes CRUTs particularly attractive for donors seeking a variable income stream and substantial tax benefits in 2025.

CRUTs for Flexible Income and Philanthropic Impact

Charitable Remainder Unitrusts (CRUTs) offer a dynamic approach to planned giving, providing beneficiaries with a variable income stream that adjusts annually based on the trust's fair market value.

This flexibility distinguishes CRUTs from Charitable Remainder Annuity Trusts (CRATs), which offer a fixed payout.

CRUTs are particularly appealing for their potential to provide inflation protection if the trust's investments appreciate over time.

Donors also benefit from an immediate income tax deduction for the present value of the charitable remainder and the ability to bypass capital gains tax on appreciated assets transferred to the trust.

The IRS mandates minimum payout rates of 5% and maximums of 50%, ensuring a balance between beneficiary income and charitable intent.

The Financial Calculations of a Charitable Remainder Unitrust

The core of a Charitable Remainder Unitrust (CRUT) calculation involves determining the present value of the payments to the beneficiary and the resulting charitable remainder value.

Unlike an annuity trust, the payments are a percentage of the trust's value, revalued annually.

Present Value of Payments to Beneficiary = (Initial Trust Value × (Annual Payment Percentage / (1 + Discount Rate)) × (1 - (1 + Discount Rate)^-Trust Term)) / Discount Rate

Charitable Remainder Value = Initial Trust Value - Present Value of Payments to Beneficiary

Future Value of Trust = Initial Trust Value × (1 + Annual Growth Rate of Trust Assets)^Trust Term

Final Trust Value After Payments = Future Value of Trust - Present Value of Payments to Beneficiary

This dynamic payout structure means payments can grow if the trust's investments perform well.

💡 Understanding the long-term financial impact of complex trusts is crucial. Our Tax Multiplier Calculator can help you project how these strategies affect your tax burden over time.

Projecting CRUT Payments and Remainder

Let's illustrate the financial outcomes of a Charitable Remainder Unitrust.

A donor funds a CRUT with an initial value of $500,000.

The trust will pay 5% of its value annually to the beneficiary for a term of 10 years.

We'll use a discount rate of 4% and assume an annual growth rate for the trust assets of 3%.

Calculate the Present Value of Payments to Beneficiary: Using the formula with Initial Trust Value = $500,000, Annual Payment Percentage = 0.05, Discount Rate = 0.04, and Trust Term = 10: Present Value of Payments to Beneficiary ≈ $194,998.23
Calculate the Charitable Remainder Value: Charitable Remainder Value = $500,000 - $194,998.23 = $305,001.77
Calculate the Future Value of Trust: Future Value of Trust = $500,000 × (1 + 0.03)^10 ≈ $671,958.19
Calculate the Final Trust Value After Payments: Final Trust Value After Payments = $671,958.19 - $194,998.23 = $476,959.96

This example shows that the present value of payments to the beneficiary is approximately $194,998.23, resulting in an initial charitable remainder value of $305,001.77.

The projected future value of the trust, after all payments, is about $476,959.96.

💡 For a clearer picture of your overall financial standing after various tax-advantaged strategies, our Tax Refund Estimator can help you project your net tax outcome.

Professional Evaluation of Charitable Remainder Unitrusts

Estate planners and financial advisors meticulously evaluate Charitable Remainder Unitrusts (CRUTs) to determine their suitability for clients.

They focus on whether a CRUT aligns with specific financial and philanthropic goals, such as generating a variable, potentially growing income stream for beneficiaries, minimizing capital gains taxes on appreciated assets, and providing a significant charitable contribution.

Professionals consider the client's risk tolerance, liquidity needs, and long-term income requirements.

They also scrutinize the proposed payout rate (which must be between 5% and 50% per IRS rules) and the trust's investment strategy to ensure its viability over the trust term.

The importance of robust trust administration and ongoing investment management is emphasized, as these factors critically impact the long-term success of both the income stream and the ultimate charitable gift.

Frequently Asked Questions

What is a Charitable Remainder Unitrust (CRUT)?

A Charitable Remainder Unitrust (CRUT) is an irrevocable trust where a donor transfers assets to the trust, receives an income stream based on a fixed percentage of the trust's annually revalued fair market value, and then the remaining assets pass to a named charity. CRUTs are planned giving tools that offer a variable income stream, bypass capital gains tax on asset transfers, and provide an immediate income tax deduction for the present value of the charitable remainder interest.

How does the variable income of a CRUT differ from a CRAT?

The variable income of a CRUT is a key differentiator from a Charitable Remainder Annuity Trust (CRAT). A CRUT pays a fixed percentage of its fair market value, revalued annually, meaning payments can increase if the trust's assets grow, potentially offering inflation protection. In contrast, a CRAT pays a fixed dollar amount each year, which remains constant regardless of the trust's investment performance, providing predictable but not inflation-adjusted income.

What are the tax advantages of establishing a CRUT?

Establishing a CRUT offers several significant tax advantages. Donors can claim an immediate income tax deduction for the present value of the remainder interest that will eventually go to charity. Furthermore, if funded with appreciated assets, the donor avoids capital gains tax on the transfer, and the trust can sell the assets without incurring immediate capital gains. The income stream to the beneficiary is also typically taxed over time, often more favorably than if the assets were sold outright.