Charitable Remainder Annuity Trust (CRAT)

Overview

An irrevocable trust that pays you (or named beneficiaries) a fixed dollar amount each year for life or a term of up to 20 years. Whatever remains at the end passes to the charity you name. The payout is set when the trust is funded and never changes, so it is the most predictable of the charitable remainder trusts. No additional contributions are allowed after funding.

Best For

Donors who want guaranteed, unchanging income
Those holding highly appreciated assets they want to sell tax-efficiently
People seeking an immediate income-tax deduction plus a charitable legacy

📊 Key Tax & Giving Advantage

Immediate partial income-tax deduction for the present value of the charitable remainder, and capital gains on contributed appreciated assets are deferred when the trust sells them.

Considerations

Irrevocable — the gift cannot be undone
Annuity must be 5%–50% of the initial value, and the charitable remainder must be at least 10%
Fixed payout does not adjust for inflation

Interested in Charitable Remainder Annuity Trust (CRAT)?

Every philanthropic structure should be tailored to your assets, goals, and state law. Request a private consultation and we'll help you choose and establish the right vehicle.

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