CRT Calculator
Estimate Your Charitable Remainder Trust Benefits
Calculate potential tax savings, annual income, and charitable impact based on your assets and circumstances.
Your Estimated Benefits
Imagine giving a major gift to a cause you care about-like funding clean water projects or supporting local food banks-while still keeping income for yourself or your family for years to come. That’s what a charitable remainder trust does. It’s not just a legal document; it’s a powerful tool that lets you help others, protect your finances, and reduce your tax burden-all at the same time.
How a Charitable Remainder Trust Works
A charitable remainder trust (CRT) is an irrevocable trust you set up while you’re alive. You transfer assets-like cash, stocks, real estate, or even artwork-into the trust. The trust then pays you (or someone you name) an income for life or a set number of years, usually up to 20. After that period ends, whatever’s left in the trust goes to the charity or charities you chose.You don’t give everything away upfront. You keep income. The charity gets the remainder later. That’s why it’s called a remainder trust.
For example, if you put $500,000 in appreciated stocks into a CRT, you might get 5% of the trust’s value each year-that’s $25,000 annually-for the rest of your life. When you pass away, the remaining balance-maybe $400,000 or more-goes to your favorite animal shelter or education nonprofit.
Biggest Benefit: Avoid Capital Gains Tax
One of the most powerful reasons people set up CRTs is to avoid paying capital gains tax on appreciated assets. Let’s say you bought shares of a company for $50,000 decades ago. Today, they’re worth $300,000. If you sold them yourself, you’d owe capital gains tax-possibly 20% or more-on the $250,000 profit. That’s $50,000 or more gone to the IRS.But if you put those shares into a CRT, the trust sells them without paying capital gains tax. The full $300,000 gets reinvested to generate income for you. You get the same income stream, but you keep $50,000 that would’ve gone to taxes.
This trick works with real estate too. If you own a rental property that’s doubled in value since you bought it, putting it into a CRT lets you sell it tax-free and convert it into steady income.
Immediate Tax Deduction
When you fund a CRT, you get an immediate income tax deduction. The IRS calculates how much of your gift will eventually go to charity based on your age, interest rates, and how long the trust will pay you. You can deduct that projected charitable portion from your taxable income in the year you fund the trust.For instance, if you contribute $400,000 to a CRT and the IRS determines that $220,000 of that will eventually go to charity, you can deduct $220,000 from your income this year. That could drop you into a lower tax bracket or reduce your tax bill by tens of thousands of dollars.
You can carry forward any unused deduction for up to five years if your income is too high to use it all in one year.
Control Over Your Legacy
A CRT isn’t just about money-it’s about impact. You decide exactly which charities benefit. It could be your alma mater, a local homeless shelter, or a national environmental group. You can even name multiple charities and split the remainder among them.Unlike writing a check or leaving money in your will, a CRT lets you see the impact while you’re still alive. You get income. The charity gets a bigger gift later. And you know your values will live on after you’re gone.
Protect Your Family’s Financial Security
Many people worry that giving to charity means leaving less for their kids. A CRT solves that. Instead of giving away assets now and risking your income, you keep a steady payout. That money can pay for medical bills, home repairs, or even help your children pay for college.Plus, once the trust ends and the charity gets the remainder, your heirs don’t have to deal with a large, taxable estate. The assets in the CRT are removed from your taxable estate. That means your family could save hundreds of thousands in estate taxes.
For example, if your estate is worth $2 million and you’ve already given $500,000 to a CRT, your taxable estate drops to $1.5 million. If you’re married and your spouse inherits everything, they can use the federal estate tax exemption (over $13 million in 2025) to avoid taxes entirely. Even if you’re single, reducing your estate by half a million can mean the difference between paying estate tax and avoiding it.
Two Types of CRTs-Which One Fits You?
There are two main types of charitable remainder trusts:- Charitable Remainder Annuity Trust (CRAT): Pays a fixed dollar amount each year, no matter how the trust’s investments perform. Good if you want predictable income.
- Charitable Remainder Unitrust (CRUT): Pays a fixed percentage of the trust’s value each year. The payout changes if the trust grows or shrinks. Good if you expect investments to rise over time.
Most people choose the CRUT because it offers growth potential. If your investments do well, your income grows. If the market drops, your income drops too-but you still get paid.
CRATs are better if you need certainty. Say you’re retired and rely on $20,000 a year to cover living costs. A CRAT guarantees that amount. A CRUT might pay $18,000 one year and $22,000 the next.
Who Should Consider a CRT?
A CRT isn’t for everyone. It works best if:- You own highly appreciated assets (stocks, real estate, business interests)
- You’re over 50 and want to supplement retirement income
- You’re in a high tax bracket and want to reduce your taxable income
- You want to leave a lasting legacy to a cause you care about
- You’re concerned about estate taxes and want to reduce your taxable estate
If you’re younger, don’t have much in appreciated assets, or don’t have a strong charity you want to support, a CRT might not be worth the setup cost and complexity.
What It Costs to Set Up
Setting up a CRT isn’t free. You’ll need:- A lawyer to draft the trust document ($3,000-$8,000)
- A trustee to manage the assets (often a bank or trust company, charging 1% per year)
- Appraisals for non-cash assets like real estate or artwork
- Ongoing accounting and tax filings
But the tax savings often cover these costs within a few years. For someone with $1 million in appreciated stock, the immediate tax deduction alone might save $300,000 or more in taxes over time.
What Happens If You Change Your Mind?
Once you fund a CRT, you can’t take the assets back. That’s why it’s called irrevocable. But you can still make changes:- You can name new charities as beneficiaries before funding the trust.
- You can switch trustees if you’re unhappy with the current one.
- You can change the payout percentage (in a CRUT) by restructuring the trust-though that’s rare and complex.
That’s why it’s critical to talk to a financial advisor and attorney before setting it up. Don’t rush. Make sure the charity you pick will still be around in 20 years. Check their financial health. Look at their annual reports. Don’t just pick the first nonprofit you like.
Real-Life Example: Maria’s Story
Maria, 68, owned a small apartment building in Portland she bought for $180,000 in 1995. It was now worth $1.2 million. She wanted to support youth education but didn’t want to sell the building and pay $200,000 in capital gains tax.She set up a CRUT, transferred the building into it, and the trust sold the property tax-free. She got 5% of the trust’s value each year-$60,000 annually-for life. She also claimed a $680,000 income tax deduction that year, cutting her federal tax bill by $200,000 over three years.
When Maria passed away five years later, the remaining $900,000 in the trust went to her local after-school program. Her children didn’t inherit the building, but they didn’t inherit a tax bill either. They got peace of mind-and she got to see the program thrive.
When a CRT Isn’t the Right Choice
A CRT makes sense if you have assets that have grown a lot and you want to give back. But it’s not ideal if:- You need full access to your money now
- You’re unsure which charity to support
- Your assets aren’t highly appreciated
- You’re under 50 and still building wealth
- You’re in a low tax bracket and won’t benefit from the deduction
In those cases, simpler options like direct donations, donor-advised funds, or naming a charity in your will might be better.
Final Thought: It’s Not Just a Tool. It’s a Statement.
A charitable remainder trust isn’t just a financial move. It’s a way to say: I’ve been lucky. I want to make sure others benefit from that luck, even after I’m gone.It lets you turn what might be a tax burden into a force for good. You get income. You get tax savings. You get legacy. And your favorite cause gets a gift that lasts far longer than any single donation ever could.
Can I set up a charitable remainder trust after I die?
No. A charitable remainder trust must be created and funded while you’re alive. But you can set up a similar arrangement in your will called a charitable remainder unitrust in your estate. It’s called a testamentary CRT, and it works similarly, but it doesn’t give you the upfront tax deduction or income during your lifetime.
Can I be my own trustee?
You can, but it’s not recommended. Managing a CRT involves legal, tax, and investment responsibilities. If you make a mistake-like missing a required payout or mismanaging assets-you could lose the trust’s tax benefits. Most people choose a bank, trust company, or professional trustee to handle it.
What happens if the trust runs out of money before I die?
If you chose a CRAT, you’ll keep getting the same fixed payment no matter what-even if the trust’s value drops to zero. If you chose a CRUT, your payments will shrink as the trust’s value drops. If it hits zero, payments stop. That’s why it’s important to invest wisely and avoid overly risky assets.
Can I change the charity after I set up the trust?
Usually not. The charity is named when you create the trust. But some trusts include a provision allowing you to name a replacement charity if the original one dissolves or changes mission. Always check this with your attorney before signing.
Is a CRT better than a donor-advised fund?
It depends. A donor-advised fund gives you an immediate tax deduction and lets you donate cash or assets to a fund managed by a nonprofit sponsor. You can recommend grants over time. But you don’t get income from it. A CRT gives you income and a larger eventual gift to charity. If you want income and control over the timing of the gift, CRT wins. If you want simplicity and flexibility, a donor-advised fund is easier.
Do I need to be rich to use a CRT?
You don’t need to be a millionaire, but you typically need at least $250,000 in appreciated assets to make the setup costs worthwhile. Smaller gifts can be handled through simpler tools like donor-advised funds or direct bequests. CRTs are designed for larger, strategic giving.