How to use the CRUT Calculator | Charitable Trust Pla

CalCRUT Calculator: Complete Field-by-Field Explanation

For ease of use, place this guide and the calculator side by side in separate tabs.

1. Fair Market Value (FMV) (required)

The total dollar amount you're contributing to fund the CRUT. Enter the current market value of the assets being transferred (cash, securities, real estate, etc.). You can include commas for readability (e.g., "1,000,000" for one million dollars). This is the starting principal. The charitable deduction and remainder value are calculated based on this amount.

2. Stated Unitrust Payout (%) (required)

The fixed percentage of the trust's value that will be paid annually to the non-charitable beneficiary (you or another income recipient). Enter a percentage between 5% and 50% (IRS-mandated range). A lower payout rate means more assets remain for charity, resulting in a larger charitable deduction. A higher payout rate means more income for the beneficiary and a smaller charitable deduction. The payout must also satisfy the 10% minimum remainder rule—at least 10% of the initial FMV must be projected to go to charity based on IRS actuarial tables.

3. § 7520 Rate (3-month election window)

The IRS-published discount rate used to calculate the present value of the charitable remainder. It's based on 120% of the mid-term Applicable Federal Rate (AFR), rounded to the nearest 0.2%. Select from a dropdown showing the rates available for the current month and the two prior months. You're allowed to elect any rate from this 3-month window. A higher § 7520 rate generally produces a larger charitable deduction because the present value of future charity distributions is calculated more favorably. The calculator typically recommends the highest available rate.

4. Override § 7520 Rate (%) (optional)

A manual override if you want to use a specific rate instead of selecting from the dropdown. Enter any valid rate (must still be one available within the 3-month window for actual tax filings). This is useful for running hypothetical scenarios or if you're working with a rate not shown in the dropdown.

5. Payout Frequency

How often the unitrust payment is distributed to the beneficiary:

Annual – once per year
Semiannual – twice per year
Quarterly – four times per year
Monthly – twelve times per year

Select the frequency that matches your trust document or your wishes. More frequent payments slightly reduce the charitable deduction because the beneficiary receives money sooner (and thus more value in present-value terms).

6. Lag Between Valuation and Payment (months)

The time gap between when the trust is valued and when the payment is actually made to the beneficiary. Enter the number of months of delay. The allowable range depends on payout frequency:

Annual: 0–11 months
Semiannual: 0–5 months
Quarterly: 0–2 months
Monthly: 0 only (no lag allowed)

Default is 0 (payment made immediately after valuation). A payment lag defers when the beneficiary receives funds, which can slightly increase the charitable deduction.

7. Trust Type

The structure determining how long the beneficiary receives payments before the remainder goes to charity:

Single-Life CRUT: Payments continue for one person's lifetime. After selecting, enter the age of the beneficiary.
Two-Life CRUT (last-to-die): Payments continue until both beneficiaries have passed away. After selecting, enter the ages of both beneficiaries.
Term-of-Years CRUT: Payments continue for a fixed term (maximum 20 years). After selecting, enter the number of years.

Younger beneficiaries mean a longer expected payout period and a smaller charitable deduction. Shorter terms mean more goes to charity sooner and a larger deduction. The 10% minimum remainder rule limits certain combinations of age, payout rate, and § 7520 rate.

8. Calculate CRUT Remainder / Charitable Tax Deduction

Click this button to run the IRS-based calculations. The calculator will display the charitable remainder value (present value of what charity will receive) and the charitable tax deduction you can claim.

9. Print Summary

Click to generate a printable summary of your inputs and results for your records or to share with advisors.

Disclaimer: This calculator uses IRS equations (exact method) and has been tested for accuracy against compliance software. Use is at your own risk without warranties. Results do not constitute legal or financial advice and require review by a qualified professional.