TCP Charitable Planning · Updated November 2026
CRAT or CRUT: Fixed Annuity or Fixed Percentage of Changing Assets?
Both trusts pay noncharitable beneficiaries first and charity later, but the annual payout formula is different.
CRAT
A charitable remainder annuity trust pays a stated fixed annuity amount based on the governing instrument.
CRUT
A charitable remainder unitrust generally pays a stated percentage of the trust's value as remeasured each year.
Investment effect
Because CRUT payments change with asset value, beneficiaries participate more directly in investment gains and losses.
Qualification
Both structures must satisfy detailed statutory requirements, so current law should be used for payout ranges and actuarial tests.
The takeaway
CRAT pays a fixed annuity amount. CRUT generally pays a fixed percentage of annually revalued trust assets.
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FAQ
Does a CRAT normally pay a fixed dollar amount?
Yes.
Can CRUT payments change as trust value changes?
Yes.
Do both ultimately leave a charitable remainder?
Yes.