Charitable Remainder Unitrust (CRUT)

[Kathleen Reynolds]

#4639

A Charitable Remainder Unitrust (CRUT) provides fixed periodic distributions to one or more beneficiaries with the remainder going to a charity. At least 5% of the initial fair market (FMV) of the trust must be distributed each year. There must be at least one non-charitable beneficiary.

The principal difference between a charitable remainder unitrust and a charitable remainder annuity trust is that a unitrust pays a varying annuity. In other words, the amount paid is likely to change each year. The payable amount is based on annual fluctuations in the value of the trust’s property. As it goes up, so does the annuity paid each year. If it drops in value, so will the annuity.

This calculation also provides an Optimize button that calculates the best scenario. The Optimize button calculates the highest payout rate that will still pass all the tests (such as the 10% test, and the exhaustion test). It also yields a non-zero deduction.

• Charitable Remainder Unitrust Qualifications
• Types of Calculations
• Data Input Fields
• Summary Report
• Income Tax Report
• Tax Savings Report
• Economic Schedule
• Graphs
• Notes
• View Sample Report

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