Overview Booklet Calculator

Charitable Remainder Trust

A charitable remainder unitrust is a trust that can be funded with your cash or other assets that provides you with income and tax benefits, and supports the work of Seattle Foundation with the remainder.

A charitable remainder trust (CRT) makes payments to you and/or other individuals throughout its existence. When the trust ends, its assets are distributed to Seattle Foundation - and possibly to other organizations, too. You may realize income tax and/or transfer tax (e.g., estate tax) savings when establishing the trust. A CRT is irrevocable and must meet certain IRS requirements.

Why consider a CRT?

Income tax deduction: Donors receive an immediate income charitable tax deduction based on the present value of the remainder interest that will eventually be passed to charity.
Capital gains tax avoidance: If appreciated assets are donated to fund the trust, the trust can sell them without triggering capital gains taxes.
Estate tax reduction (less common): Transferring assets into a CRT may reduce the donor's taxable estate, potentially decreasing or eliminating estate taxes.
Retirement planning/income planning: The donor would benefit from a tax deduction but would like a steady stream of income during some period, such as during retirement.

What are our fees for a CRT?

Seattle Foundation offers highly competitive rates to serve as trustee for a CRT. Fees are annual, as follows:

.25% Trustee Administration Fees (paid to Seattle Foundation)

$400 Tax Preparation & Filing Fee (paid to Seattle Foundation)

.60% Investment Management Fees (paid to BNY for trust asset management)

In addition, 50% of the remainder must benefit Seattle Foundation's unrestricted charitable purpose. 50% can be donor directed, and Seattle Foundations' Gift Planning team will work with you to identify an option that best meets your philanthropic goals.

Get Started

Booklet

Download Booklet

Calculate Benefits

The charitable remainder unitrust calculator generates a printable presentation that shows how you can enjoy increased income with a tax-free sale plus benefit from charitable tax deduction.

* Required fields

Help content opened below

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.

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

Income Tax Rate

Select the current federal income tax rate of the donor. This will be used to project possible income tax savings. If you are uncertain about the correct rate, you may choose one of the middle rates. For many people, this will be close to their actual income tax rate.

Property Value $

Please enter a valid property value

Property value is required

Enter the amount of cash or the fair market value (FMV) of the asset(s) used to fund the CGA. 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.

Cost Basis $

Please enter a valid cost basis

Cost basis is required

Enter the cost basis of the asset being used to fund the trust or annuity. If the asset is cash, the cost basis is equal to the gift amount. If it is appreciated property, the cost basis will most likely be the amount you originally paid for the property. The cost basis is used to determine the capital gains tax which will be bypassed as a result of selling the asset. If the cost basis is not known or cannot be proven, the IRS assumes the cost basis to be $0. If cash funds the gift annuity, enter the same value as "Value of Property."

Current Return

Current return percentage is required

Enter the current return or yield of the asset(s) which will be used to fund the gift agreement. For example, if the trust will be funded with public-traded stock which is currently paying a dividend of 3%, the current return yield is, in turn, 3%. If the gift is funded with vacant land or a personal residence (assuming the property is not leased), the current return would be 0%.

Trust Payout

Payout must be between 5% and 50%

Payout percentage is required

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.

Post-submit calculation error message goes here

Processing

Generous Giving Powering Shared Prosperity

Charitable Remainder Trust

Get Started

Your Feedback

Let Us Help You With Your Gift