Types of Charitable Remainder Trusts

There are two basic types of charitable remainder trusts: the charitable remainder unitrust (CRUT) and the charitable remainder annuity trust (CRAT).

Charitable remainder unitrust

This type of trust provides that a fixed percentage (at least 5% of the fair market value of the assets in the trust, computed annually) be paid to the income beneficiaries at least once per year for their lifetime or for a term of up to 20 years. The amount paid out each year will fluctuate according to the annual valuation of the trust principal.

Charitable remainder annuity trust

This type of trust provides that a specified dollar amount (at least 5% of the fair market value of the trust assets valued at the time the trust is created) be paid out at least once per year to the income beneficiaries for their lifetime or a term of up to 20 years. The amount paid out each year does not change and is paid our regardless of the value of the trust assets.

View an example of a charitable remainder trust

Trust management services

A charitable remainder trust requires the services of a trustee to administer the trust provisions and invest the trust assets. Wheaton College Trust Company, N.A. is available to serve as trustee on charitable remainder trusts that significantly support Wheaton College.