How is a CRUT different from a CRAT?

A CRUT pays a fixed percentage of trust value recalculated annually - if the trust grows, your income grows. A CRAT pays a fixed dollar amount regardless of trust performance. CRUTs are more common because they provide inflation protection and allow additional contributions.

What's the minimum payout rate?

The IRS requires a minimum 5% annual distribution. There's also a rule that the remainder going to charity must be at least 10% of the initial contribution value. An actuary can help design the right payout rate.

Can I add more assets to the trust later?

Yes - with a CRUT, you can make additional contributions over time. Each addition gets its own tax deduction. CRATs do not allow additional contributions.

What types of assets can I contribute?

Cash, publicly traded stock, closely held business interests, real estate, and other appreciated assets. Non-liquid assets like real estate or business interests work especially well because the trust can sell them without immediate capital gains tax.

What happens if I need to end the trust early?

CRTs are irrevocable - you can't get the principal back. However, some CRTs are designed with term periods (instead of lifetime), and there are secondary market options for selling your income interest if needed.

Charitable Giving

Charitable Remainder Unitrust (CRUT)

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advanced · $500K+

Similar to CRT but pays a fixed percentage of trust value annually (recalculated each year).

If trust grows, your income grows.

Great for appreciated assets - avoid capital gains, get income stream, partial deduction.

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Key takeaways

A CRUT pays a fixed percentage of trust value, recalculated yearly, so your income rises if the trust grows.
You avoid capital gains on appreciated assets transferred in, receive income for life or a term, and get a partial deduction.
The IRS requires a minimum 5% annual payout, and the projected charitable remainder must be at least 10% of the contribution.
Unlike a CRAT, a CRUT allows additional contributions over time.

Requirements

Highly appreciated assets ($250K+)
Charitable intent
Estate planning attorney required

How to Implement

1Consult estate planning attorney
2Establish CRUT with charity as remainder beneficiary
3Transfer appreciated assets to trust
4Receive 5-50% of trust value annually
5Remainder goes to charity at death or term end

The bottom line
A CRUT is the variable-payout counterpart to the CRAT, useful for appreciated assets you want to diversify while receiving income and supporting charity. It is irrevocable and attorney-drafted.

Frequently Asked Questions

Minimum Investment

$250,000+ typically

Educational Only: This information is for educational purposes. Consult a qualified financial advisor or tax professional before implementing.

Last reviewed: April 2026

Related charitable giving strategies

Donor-Advised Fund (DAF)Donate appreciated stock, avoid capital gains tax, get immediate deduction, grant to charities over time.Charitable Remainder Trust (CRT)Convert highly appreciated assets into lifetime income stream while benefiting charity.Qualified Charitable Distribution (QCD)Age 70.5+? Send IRA money directly to charity tax-free, without it counting as taxable income.

Sources

Internal Revenue Service, Rev. Proc. 2025-32
2026 inflation-adjusted amounts (tax brackets, standard deduction, estate & gift, FSA, credits)
Internal Revenue Service, Notice 2025-67
2026 retirement plan limits (401(k), IRA, SIMPLE, catch-up)
Internal Revenue Service, Rev. Proc. 2025-19
2026 HSA and HDHP inflation-adjusted limits

Educational information only. Not financial, tax, or legal advice or a recommendation. Figures are drawn from the primary sources cited above; verify current amounts with the source before acting.