Charitable Remainder Unitrust

A Charitable Remainder Unitrust allows you to make charitable deductions but still maintain an income stream.

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Charitable Remainder Unitrusts let you generate income for Beneficiaries and donate to charities. 

Charitable Remainder Unitrusts (CRUTs) can be beneficial in certain instances. They’re a tax-exempt, Irrevocable Trust (meaning they cannot be changed), set up with the intention of reducing taxable income while supporting a charity at the same time.

CRTs allow for income to be disbursed to Beneficiaries for a pre-designated time period. At the end of that timeframe, the remaining Trust balance is then donated to a charity of the Grantor’s (the Trust creator’s) choice. One big benefit to the CRT is the fact that you can continue to make contributions to it, growing the value, even after it’s first been funded.

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Who could have a CRUT? 

A Charitable Remainder Unitrust is not for everyone. It may or may not work for you, depending on your long term goals and how much you have to put towards funding this unique estate planning vehicle. Typically, they can be great if you:

  • Need an income stream (either for yourself or for another person in your life)

  • Want an immediate charitable deduction set up

  • Are comfortable with market fluctuation - income distributions are based on a fixed percentage of market value, which can (and likely will) change over time

Can I Be the Beneficiary For My Own Charitable Remainder Unitrust?
How Often Can Beneficiaries Receive Money?
How Much of an Income Stream Can I Get?
How Does the Charity Get Its Distribution?
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CRUT Benefits

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Even though they’re not the right choice for everybody or every circumstance, there are some major benefits to having a Charitable Remainder Unitrust. 

  • Tax Deductions
    CRUTs allow you to take a partial income tax deduction when the Trust is first funded. The amount allowed is calculated on the expected remaining distribution that’ll go to the charitable beneficiary you name.

  • Tax Exempt
    If you’re looking for asset diversification, a CRUT might be exactly what you’ve been searching for. With Charitable Remainder Unitrusts, the actual investment income is exempt from tax - but keep in mind that the beneficiary who receives income will pay taxes on what they earn.

  • Variety of Asset Options
    A variety of assets can be used to fund your CRUT. You can use everything from real estate, to cash, to publicly traded securities, and more.

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