Charitable Remainder Unitrust (CRUT) Template

What Is the Charitable Remainder Unitrust?

A charitable remainder unitrust is a split-interest irrevocable trust that pays income beneficiaries a percentage of the trust's annually revalued assets for life or a term of years, with remaining assets distributed to qualified charitable organizations when the trust terminates. Unlike annuity trusts with fixed payments, unitrust distributions fluctuate based on investment performance.

This structure allows you to transfer highly appreciated assets like stock or real estate into the trust, sell those assets without paying capital gains tax, reinvest the full proceeds, and receive distributions based on the total value. You receive an immediate income tax deduction for the present value of the charity's remainder interest while maintaining income for life.

 

 

Is This Charitable Remainder Unitrust Right for You?

You need this agreement if you're:

• Holding highly appreciated assets facing large capital gains taxes
• Planning major charitable gifts and wanting current tax deductions
• Seeking lifetime income from appreciated property without selling
• Diversifying concentrated stock positions tax-efficiently
• Supporting charitable organizations while maintaining income streams
• Offsetting high-income years with charitable deductions

You definitely need this agreement if:

• You're selling appreciated business interests or real estate
• Your low-basis stock portfolio needs diversification without tax hits
• You want charitable deductions exceeding 30% of your AGI
• You're facing six-figure capital gains taxes on asset sales
• You need income but want assets to benefit charity eventually

 

 

Why Thousands Trust Legal GPS Templates

Save Money: Attorney fees for CRUT drafting typically run $6,000 to $12,000. Our template costs $35.

Save Time: Download instantly and complete in hours with your tax advisor rather than weeks of attorney drafting.

Look Professional: Created by estate planning attorneys with full IRC Section 664 compliance language that the IRS and charities recognize.

Keeps You Out of Court: Comprehensive provisions including prohibited transaction protections, qualified appraisal requirements, four-tier distribution rules, and reformation clauses prevent IRS challenges and disqualification issues.

 

 

 

Get Protected in 3 Simple Steps

Step 1: Secure Checkout
Complete your purchase through our encrypted payment system. Receive instant access to your template.

Step 2: Instant Download
Download your Charitable Remainder Unitrust template in Microsoft Word format. Fully editable and reusable.

Step 3: Fill In the Highlighted Fields
Follow the bracketed guidance to select unitrust percentage, name income beneficiaries, designate charitable remainder beneficiaries, and specify payout terms. Obtain qualified appraisals for non-cash contributions, execute the trust, transfer assets, and file Form 8283 with your tax return to claim your charitable deduction.

 

Frequently Asked Questions

Can I use this template multiple times?

Yes. After purchasing, you can create multiple charitable remainder unitrusts for different assets, beneficiaries, or charitable purposes. Some donors create separate CRUTs for real estate versus securities to manage different asset classes appropriately.

Is this contract legally binding?

Yes. This template contains all provisions required for a valid charitable remainder unitrust under IRC Section 664(d)(2). When properly completed, executed, funded with qualified appraisals, and reported on your tax return, it creates a legally binding irrevocable trust that qualifies for income tax deductions and capital gains tax avoidance.

How much income will I receive from a CRUT?

You receive a fixed percentage of the trust's value, revalued annually. A 6% CRUT funded with $1 million pays $60,000 in year one. If the trust grows to $1.1 million, year two pays $66,000. If it declines to $950,000, year three pays $57,000. Your income fluctuates with investment performance.

What's the difference between a CRUT and a charitable remainder annuity trust?

A charitable remainder annuity trust (CRAT) pays a fixed dollar amount regardless of trust value, while a CRUT pays a percentage that adjusts annually. CRUTs allow additional contributions, provide inflation protection if investments grow, but offer less payment certainty. CRATs provide fixed income but cannot accept additional contributions.

Can I change the charitable beneficiaries after creating the CRUT?

Yes. The template reserves your right to change charitable beneficiaries during your lifetime by written notice to the trustee, provided replacement charities qualify under IRC Sections 170(c) and 2055(a). After your death, charitable beneficiaries cannot be changed.

What happens if I die before the trust term ends?

For lifetime CRUTs, the trust terminates on your death and remaining assets go to charity. For two-life CRUTs, payments continue to the survivor. For term-of-years CRUTs, payments continue to your estate or named successor for the remainder of the term.

How much of a tax deduction will I receive?

The deduction equals the present value of the charity's remainder interest, calculated using IRS tables based on your age, the unitrust percentage, and the Section 7520 rate. A 70-year-old funding a $1 million CRUT with a 6% payout typically receives a deduction of $400,000 to $500,000, deductible at 30% of AGI annually with five-year carryforward.

Can I serve as my own trustee?

Yes, if you're the sole income beneficiary. For CRUTs with multiple income beneficiaries or where conflicts might arise, an independent trustee is advisable. Many donors start as their own trustee then transition to a corporate trustee as the trust matures or their circumstances change.