Charitable Remainder Trust Calculator
Calculate the income, tax deduction, and capital gains benefits of setting up a Charitable Remainder Trust (CRT). Compare CRAT vs CRUT payouts and see how a CRT stacks up against selling your appreciated assets outright.
Asset Being Contributed
Publicly traded stock held over 1 year provides the best CRT benefits. Real estate and other assets also qualify but may require appraisals.
CRAT pays a fixed dollar amount each year. CRUT pays a fixed percentage of the trust value (recalculated annually), so payouts can grow with the trust.
Payout Terms
Tax & Return Rates
CRT Tax Efficiency Score
This CRT structure is highly tax-efficient. The combination of capital gains avoidance and charitable deduction provides excellent benefits.
Charitable Deduction
$71,125
Total Tax Savings
$122,228
Annual Income from Trust
$37,450
7% CRUT payout
Charitable Tax Deduction
$71,125
present value of remainder
Capital Gains Tax Avoided
$95,200
on $400,000 gain
Total Tax Savings
$122,228
deduction + cap gains avoided
Trust Value & Cumulative Income Over Time
How the trust balance and your total income received evolve each year
Tax Benefit Breakdown
How your total tax savings are distributed across benefit types
Total
$122,228
Income Tax Deduction Savings
22%$27,028/yr
Capital Gains Tax Avoided
65%$80,000/yr
NIIT Avoided (3.8%)
12%$15,200/yr
CRT Income vs. Selling Outright
After-tax income comparison: contributing to a CRT vs. selling the asset and investing the proceeds
Year-by-Year Trust Projection
Detailed breakdown of trust payouts, taxes, net income, and remainder to charity
| Year | Trust Value | Payout | Tax on Payout | Net Income | Cumulative Income | Remainder to Charity |
|---|---|---|---|---|---|---|
| 1 | $497,550 | $37,450 | $14,231 | $23,219 | $23,219 | $497,550 |
| 6 | $485,480 | $36,541 | $13,886 | $22,655 | $137,617 | $485,480 |
| 11 | $473,703 | $35,655 | $13,549 | $22,106 | $249,240 | $473,703 |
| 16 | $462,211 | $34,790 | $13,220 | $21,570 | $358,156 | $462,211 |
| 20 | $453,218 | $34,113 | $12,963 | $21,150 | $443,383 | $453,218 |
Personalized Insights
Actionable recommendations based on your numbers
You selected a CRUT — here is how it works
A Charitable Remainder Unitrust (CRUT) pays 7% of the trust value each year, recalculated annually. If the trust grows, your payouts increase. If it declines, payouts decrease. This provides inflation protection and allows additional contributions over time.
Your 7% payout rate is within a typical range
A payout rate of 7% balances income needs with trust growth and charitable remainder. The IRS requires a minimum of 5% and a maximum of 50%, so you are well within compliance. Most advisors recommend 5-7% for long-term sustainability.
This CRT passes the 10% remainder test
The present value of the charitable remainder is 14% of the contributed asset value ($71,125). The IRS requires the remainder interest to be at least 10% of the initial contribution for the trust to qualify as a CRT.
Avoiding $95,200 in capital gains tax
Your asset has 80% unrealized appreciation ($400,000 gain). By contributing it to a CRT instead of selling, you avoid 20% capital gains tax plus 3.8% NIIT on the entire gain. The CRT can then sell the asset and reinvest the full amount tax-free inside the trust.
Your charitable deduction of $71,125 can save $27,028 in taxes
At a combined 38% tax rate, your charitable deduction generates significant income tax savings. Note that the deduction is limited to 30% of AGI for appreciated property (20% for certain assets). Any excess can be carried forward for up to 5 additional tax years.
CRTs provide powerful estate planning benefits
Assets in a CRT are removed from your taxable estate, potentially saving 40% estate tax. You can name a family foundation or donor-advised fund as the charitable beneficiary to maintain family philanthropic involvement. Consider pairing the CRT with an Irrevocable Life Insurance Trust (ILIT) to replace the asset value for heirs.
Estimated $453,218 goes to charity after 20 years
After paying you income for 20 years, the remaining trust assets of $453,218 transfer to your designated charity. You will have received $443,383 in total net income from the trust during this period.
CRUT payouts can grow with inflation
Because CRUT payouts are based on the annual trust value, your income can increase as the trust grows. If the trust earns 8% annually and pays out 7%, the trust grows at roughly 0.0% per year — potentially outpacing the 2.5% inflation rate.