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FOR DONORS WITH CONCENTRATED OR APPRECIATED ASSETS · ESTATE PLANNERS · FAMILY-OFFICE STAFF

Charitable Remainder Trust pays you. Charitable Lead Trust pays charity. Same family of structures — opposite directions.

A split-interest trust separates the income stream from the eventual remainder. CRT pays the donor (or designee) for life or a fixed term, then the remainder goes to charity — useful for donors with concentrated, low-basis assets who need income and want a current charitable deduction. CLT runs the other way: pays charity for the term, remainder back to heirs — useful for transferring assets to the next generation at a reduced gift-tax value, especially in low 7520-rate environments.

CRT
Income to donor
CLT
Remainder to heirs
Deduction
At funding
7520
The hurdle rate
YOUR DESIGN
1
Donor & goals
2
Asset & basis
3
Trust terms
4
Rates & assumptions
5
Recommendation
STAGE 1 OF 5

Donor & goals

Two questions decide CRT vs CLT vs outright. Do you need income? Do you want to move wealth to heirs at a discount?

For CRT lifetime payouts, this drives the actuarial split between income interest and charitable remainder. Older donor = larger remainder = larger deduction.
CRT fits "I need lifetime income from this asset but want charity to eventually get the rest." CLT fits "I want to transfer this to my heirs at a reduced tax-cost and am willing to let charity collect income for a term."
Federal + state combined. Drives the value of the charitable deduction at funding.
%
If you expect taxable estate above current federal exemption (~$13.6M individual / $27.2M couple, sunsetting post-2025), CLT design becomes meaningfully more attractive.
The split-interest trade. Both CRT and CLT are irrevocable. You cannot undo them. In exchange for that commitment, the IRS lets you split the asset between an income stream and a remainder and lets you take a current charitable deduction for the actuarial value of whichever piece goes to charity. Get the design wrong and you've locked in a bad trade for the rest of your life (CRT) or the trust term (CLT). This tool gives you the directional decision — execute only with a trust attorney experienced in split-interest design.
STAGE 2 OF 5

Asset & basis

The split-interest trust is especially powerful when funding with a low-basis, highly appreciated asset — the trust sells it inside the structure with no immediate capital-gains tax to the donor.

The amount you'd transfer to the trust. CRT minimum to be economic: usually $250K+. CLT economic floor: usually $1M+ given setup costs.
$
Your basis in the asset. The lower the basis (the more appreciated), the bigger the CRT advantage on capital-gains deferral.
$
Cash and public stock fund quickly. Appreciated real estate and closely-held stock require careful structuring (UBTI risk for CRT, valuation discounts for CLT).
Federal LTCG + Net Investment Income Tax + state. For most affluent donors: 23.8% federal + state.
%
STAGE 3 OF 5

Trust terms

Payout rate and term length together determine which piece (income or remainder) gets the actuarial value — and therefore the deduction. CRT payout must be 5%-50%. CLT payout must produce a remainder >0 to be valid.

CRT: 5% (most common — maximizes charitable remainder/deduction) to 50%. CLT: typically 5-10%, set to zero-out gift-tax value on remainder to heirs.
%
CRT: typically donor lifetime (or joint lifetime with spouse) — paid until death, then remainder to charity. CLT: typically fixed years (10-20).
For fixed-term CRTs (max 20 yrs) or CLTs (typical 10-25 yrs). Ignored if lifetime is selected.
CRAT/CLAT pay a fixed annuity dollar amount each year. CRUT/CLUT pay a fixed % of the trust's annual revalued assets — payments grow if trust grows.
STAGE 4 OF 5

Rates & assumptions

The IRS §7520 rate is the hurdle rate the trust must beat. Published monthly; donor can elect the rate from the gift month or either of the two preceding months.

The actuarial discount rate for valuing the split. Higher 7520 = larger remainder valuation = bigger CRT charitable deduction. Lower 7520 = larger lead-interest valuation = bigger CLT zero-out leverage. Currently around 5%.
%
Internal trust portfolio return assumption — diversified market portfolio. Most planners use 6-7% net of trust expenses.
%
For lifetime CRTs. IRS uses Table 2010CM mortality; this slider lets you stress-test. Default 0 = use age-based default (approx 85 - current age + 5).
Trustee fee + accounting + tax-prep. Typical: 0.5-1.0% of assets per year for a corporate trustee.
%
STAGE 5 OF 5

Recommendation

Side-by-side: CRT (income to donor) · CLT (remainder to heirs) · outright gift (full deduction, no income). The recommendation flags which fits the objective and the asset profile.

HERE — TRY THESE. THEY MAY HELP.

No forms. No funnel. Just the work.

Split-interest trusts are not DIY structures. This tool gives the directional answer; the guides give the surrounding framework. If you're moving forward, your next call is to a trust attorney and a CPA with split-interest trust experience. The Institute does not sell those services — we publish the reference material so the conversation with your advisors is informed.

Family Office Guide Estate Planning Decoded All free tools
Practitioner reference. Outputs are simplified actuarial estimates based on user inputs. CRT/CLT valuation requires Treasury Regs §1.664-2/3 (CRT) and §1.170A-6 / §25.2522 (CLT) compliance using the IRS §7520 mortality and discount tables for the gift month. UBTI rules, four-tier accounting (CRT), grantor vs non-grantor election (CLT), and state income-tax treatment all materially change the result. Do not execute a split-interest trust without a trust attorney experienced in §664/§170 split-interest design. This is not financial, tax, or legal advice.
WANT THE METHODOLOGY BEHIND THIS TOOL?
This calculator pairs with Family Office Guide and Estate Planning Decoded.
The tool gives a directional answer. The guides give you the full split-interest playbook — zero-out CLT mechanics, GRAT-CLT combinations, NIMCRUT vs NICRUT variations, the four-tier CRT accounting flow, the §7520 election timing, and how split-interest trusts coordinate with the broader multigenerational plan.
Methodology references: FO Guide Ch 9 (Philanthropy operating model) and Estate Planning Decoded Ch 8 (Split-interest trusts).
Family Office Guide → Estate Planning Decoded →
PROFESSIONAL DISCLAIMER · PLEASE READ

Educational and informational purposes only. This calculator and any output it produces are intended solely for general educational and decision-support purposes. They do not constitute investment, tax, legal, accounting, or any other professional advice, and they do not create a fiduciary, attorney-client, or accountant-client relationship of any kind.

Simplified actuarial estimates. Actual CRT/CLT valuation requires Treasury Regs §1.664-2/3 (CRT) and §1.170A-6 / §25.2522 (CLT) using IRS §7520 mortality and discount tables for the gift month. UBTI rules under IRC §664(b) and the 4-tier accounting flow for CRT distributions; grantor vs non-grantor election rules under IRC §170(f)(2) for CLT; the 10% minimum remainder rule under §664(d); the qualified-appraisal requirement under §170(f)(11) — none are modeled in full. State income-tax and state-trust-situs considerations vary materially.

Consult qualified counsel before execution. Split-interest trusts are irrevocable. Do not execute a CRT or CLT without a trust attorney experienced in §664/§170 design, a CPA who can model the four-tier accounting and grantor-status implications, and (for non-marketable assets) a qualified appraiser per Pub. 561.

Co-branded versions: If a professional advisor's name and contact information appear on this tool, that advisor has elected to make the tool available to clients as a courtesy.

Educational references and tools — not legal, tax, accounting, or investment advice, and not a recommendation to buy or sell any security. Consult a qualified professional about your specific situation. © 2026 The Baratelli Institute.