A CRUT is a type of charitable remainder trust that allows a person to donate assets to charity while receiving income for life or a specified term. The CRUT pays a fixed percentage of its assets each year to the beneficiary, with the remainder going to the charity after the term.

• Asset Donation: Eligible types of assets that can be transferred to the CRUT include stocks, bonds, or real estate.
• Income for Beneficiary: The CRUT pays a fixed percentage of its fair market value each year to the donor or beneficiary. This payout percentage is typically at least 5%.
• Remainder to Charity: Once the income period ends, the remaining assets in the trust are distributed to the designated charitable organization(s).
• Annual Revaluation: The trust assets are revalued annually to determine the amount of the payout.
• Flexibility: Additional contributions can be made to the CRUT.

Key Benefits

Income Stream:

The donor or the designated beneficiary receives income from the trust assets during the term.

Tax Benefits:

The donor may be able to claim a charitable deduction for the value of the assets transferred to the CRUT.

Estate Planning:

The CRUT can help reduce the donor’s estate tax burden by removing assets from his/her estate during his/her lifetime.

Support for Charity:

The remainder interest in the trust provides ongoing support for your chosen charitable cause.

Important Considerations

CRUTs are irrevocable, meaning its terms cannot be changed after they are established.

Specialized professionals such as a knowledgeable estate planning attorney should be consulted to determine if a CRUT is the right choice for any individual.