CRT Remainder Calculator
This application calculates the actuarial present value of the charitable remainder interest of a
charitable remainder annuity trust or a charitable remainder unitrust. It is provided by Life Fund
Services for information purposes only. Your use of the CRT Remainder Calculator constitutes your
acceptance of the terms and conditions listed in our legal notices.
- Contribution Amount:
- Enter the dollar amount of the contribution to the charitable remainder trust. The remainder value will be calculated in dollars and cents. Leave this field empty to calculate a decimal remainder factor.
- Trust Type:
- Check if the CRT will be a charitable remainder unitrust (payments equal to a fixed percentage of the annual valuation of the trust assets), or a charitable remainder annuity trust (payments equal to a fixed dollar amount or a fixed percentage of the contribution amount.)
- Payout Rate:
- Enter the annual percentage payout rate to the term (non-charitable) beneficiaries. This is a percentage of the annual valuation of the trust for a unitrust, or a percentage of the contribution value for an annuity trust. The annual valuation date for a unitrust is assumed to be the first day of the calendar year. Payout rate values outside the legally allowable range of 5% to 50% will be flagged in red, but the calculations will be performed.
- Payment Frequency:
- Check the frequency that payments will be made to the term (non-charitable) beneficiaries. Payments are assumed to be made at the end of the frequency period (e.g. at the end of each calendar quarter.)
- Trust Term:
- Enter the trust term, in years, for a fixed term trust. Leave this field empty for a trust that will continue for the lives of one or more beneficiaries, and fill in one or more "ages of the beneficiaries" fields. A term greater than the legally allowable 20 years will be flagged in red, but the calculations will be performed.
- Mortality Table:
- Check the appropriate mortality table to use for the actuarial calculations. For valuation dates prior to May 1, 2009 the old mortality table (90CM) should be used by checking "<7/1/09". For valuation dates after June 30, 2009 the new mortality table (2000CM) should be used by checking "Current". For valuation dates after April 30, 2009 and before July 1, 2009 either mortality table may be used.
- Federal Interest Rate:
- Enter the discount rate for valuing charitable remainder trusts. This rate is published monthly by the Internal Revenue Service as "120% of the applicable Federal mid-term rate, compounded annually." Enter the rate for the month of the contribution or for either of the prior two months, rounded to the nearest .2% (two-tenths of one percent.) Higher rates generally result in greater remainder values.
- Ages of Beneficiaries:
- Enter the ages of the beneficiaries at their birthday nearest to the date of the contribution, for a trust established for the lifetimes of one or more individual beneficiaries. Enter a number that is one greater than a beneficiary's age if 183 days or more have elapsed since the beneficiary's prior birthday. Leave these fields empty for a fixed term trust and fill in the "trust term" field.
- Remainder Value:
- The actuarial remainder value is calculated based on the values entered. A remainder less than the legal minimum of 10% is flagged in red. A warning message is shown in red for an annuity trust where there is greater than a 5% probability that the remainder will be less than zero.
For further information write
Life Fund Services L.L.C.
7 Fairfield Court
Danbury, CT 06811
or e-mail: firstname.lastname@example.org
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See legal notices regarding use of web site.