CRUT Calculator

Introduction

A Charitable Remainder Unitrust (CRUT) allows donors to convert appreciated assets into a lifetime (or term) income stream, with the remainder passing to charity. Calculating the CRUT’s values—initial charitable deduction, annual payout, and remainder value—requires applying IRS §7520 rates and trust terms. Our CRUT Calculator walks you through each input, then instantly delivers precise financial figures, empowering informed planning and tax strategies.

How to Use the CRUT Calculator

1. Enter the Fair Market Value (FMV) of assets you plan to fund into the trust.
2. Specify the Annual Payout Rate (commonly between 5 %–6 %).
3. Input the current Section 7520 Rate (published monthly by the IRS).
4. Select the Term—either “Charitable remainder” (lifetime) or a fixed number of years.
5. Click Calculate to view your unitrust payout, charitable deduction, and remainder gift value.

Calculation Details

Calculations follow IRS Publication 1457 guidelines:

• Annual Payment = FMV × payout rate
• Charitable Deduction = FMV × present value factor (based on §7520 rate and term)
• Remainder Value = FMV − present value of payments

The present value factor uses actuarial tables and §7520 percentages to discount future payouts.

Practical Applications

• Tax Planning: Maximize upfront deductions by choosing optimal payout rates and terms.
• Estate Planning: Reduce probate assets while securing income for beneficiaries.
• Charitable Giving: Ensure significant future gifts to favorite organizations.

Frequently Asked Questions

1. What is the §7520 rate?

The IRS publishes the §7520 discount rate each month. It’s used to calculate the present value of future charitable payments. Check the latest at IRS.gov.

2. Can I set a unitrust for a specific term?

Yes. CRUTs can be for a lifetime (“charitable remainder”) or a fixed term (up to 20 years). Lifetime trusts often result in higher deductions due to longer payout horizons.

3. How is the charitable deduction calculated?

It’s the present value of the remainder interest, based on FMV, payout rate, §7520 rate, and term. This calculator applies IRS actuarial tables automatically.

4. Are there minimum payout requirements?

Yes. CRUTs must pay at least 5 % of FMV each year and cannot exceed 50 % payout.

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6. Disclaimer

This calculator provides estimates for planning purposes only. Consult qualified legal or tax advisors before establishing a CRUT.