Charitable Remainder Annuity Trust Deduction Calculator

An annuity trust pays a fixed amount equal to five percent or more of the initial corpus for one or two lives.

* Required fields

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Number of Beneficiaries

One Two

Click the appropriate button for a presentation of one or two beneficiaries. Selecting one beneficiary will cause the second beneficiary and the associated name and birthdate fields to be hidden from view.

Gift Date

Month:

Day:

Year:

Please enter a valid gift date

Gift month field is required

Gift day field is required

Gift year field is required

Rate of the Month

The current Rate of the Month (AFR) will display in the drop down box. Choose one of the three rates offered.

Donor

Enter the name of the Donor. You may use such titles as "Mr.", "Mrs.", "Dr.", "Rev.", "Jr.", etc.

Donor is required

First Beneficiary

Enter the name of the person. You may use such titles as "Mr.", "Mrs.", "Dr.", "Rev.", "Jr.", "Sr.", etc. For the remainder unitrust the first person is the first income recipient or beneficiary of the agreement.

First beneficiary is required

Birthdate

Month:

Day:

Year:

Please enter a valid birthdate for the first beneficiary

Birth month of the first beneficiary is required

Birth day of the first beneficiary is required

Birth year of the first beneficiary is required

Second Beneficiary

Second beneficiary is required

Birthdate

Month:

Day:

Year:

Please enter a valid birthdate for the second beneficiary

Birth month of the second beneficiary is required

Birth day of the second beneficiary is required

Birth year of the second beneficiary is required

Trust Amount $

Please enter a valid property value

Property value is required

Enter the amount of cash or the fair market value (FMV) of the assest(s) used to fund the trust. For assets such as real estate, closely-held stock and other hard to value assets, the FMV is the appraised value of the property on the date of the gift.

Payout

Trust payout is required

Payout must be between 5% and 50%

Enter the percent income payout to the donor. You must select a trust percent payout of 5% or more.

Payment Frequency

Select either monthly, quarterly, semiannual, or annual income payments to the beneficiary(ies) of the income. The choice of payment frequency does affect the amount of the charitable deduction as the more frequent the payment (i.e. monthly as opposed to annually), the smaller the donor's tax deduction.

Under the Internal Revenue Code, the charitable income tax deduction must be at least 10% of the initial value. The payout amount has been lowered to qualify under the IRS 10% deduction test. This calculation includes a safety factor of 0.04%. The deduction factor will be 0.10040 or greater. The Maximum Payout Rate by Crescendo 10% Deduction Test: cres_calc_maxrate10

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The Utah Valley University Planned Giving Department provides information on charitable giving opportunities and financial planning tools, including calculators, as a public service for educational purposes only. This content is not intended as legal, tax, or financial advice. Individuals are encouraged to consult with their own financial, legal, or tax advisors when making decisions about charitable giving or tax and financial strategies.

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Charitable Remainder Annuity Trust Deduction Calculator

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Utah Valley University
in a Meaningful Way