charitable remainder unitrust

Charitable remainder unitrusts (CRUTs) are a type of charitable remainder trust that distributes a percentage of its assets to a beneficiary annually based on its current fair market value, and to which additional contributions may be made after its establishment. This distinguishes them from charitable remainder annuity trusts (CRAT), which distribute a fixed dollar amount based on the value of the assets in the trust at the time it is created, and to which additional contributions may not be made. 

As with CRATs, these trusts create tax benefits by allowing the grantor to delay paying capital gains taxes on the assets and possibly receive a partial tax deduction based on the value of the charity’s interest in the trust. The Internal Revenue Code requires these payments to equal at least 5% and no more than 50% of the fair market value of the trust’s assets, valued annually. 

[Last reviewed in July of 2025 by the Wex Definitions Team] 

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