Jump the navigation

Standard CRUT Information

CRUTs are a powerful planning tool for retirement due to the tax-exempt status of the trust. Like qualified retirement plans, CRUTs are not liable for capital gains or earned income incurred by the unitrust. This allows the trusts to compound their earnings without the burden of taxes. A standard CRUT distributes a fixed percentage of the value of all assets in the trust, typically in quarterly installments. As the value of the trust changes over time, the payments will correspondingly adjust. And as with most retirement plans (Roth IRAs excluded), the income received from the trust is taxable, although the taxable portion of the payments will vary based upon a variety of factors. Quite often, the taxation of payments from CRUTs is less than from other retirement plans.

Unlike retirement plans, there is no limit on the quantity of assets that may be transferred into a CRUT and many types of assets, like real estate, may be contributed. This allows people to transfer assets in larger increments to more effectively plan for retirement. For many people, one of the greatest financial benefits of establishing a CRUT is contributions to unitrusts are tax deductible. Based on the specific terms of the CRUTs and the timing of the gift, contributions are tax deductible as a fraction of the face amount of the asset, and the tax deduction is often helpful in alleviating current income tax liabilities. In addition, because CRUTs are separate legal entities, assets placed into the trusts are not taxable in the donor's estate.

beaker duck hiker icon-a-to-z icon-arrow-circle-down icon-arrow-circle-up icon-arrow-down icon-arrow-left icon-arrow-right icon-arrow-up icon-calendar-no-circle icon-calendar icon-camera icon-clock icon-cv icon-dot icon-down-triangle icon-email-circle icon-email icon-external-link icon-facebook icon-flickr icon-generic-blog icon-google-plus icon-home icon-instagram icon-library icon-link-circle icon-link-inverted icon-linkedin icon-lock icon-magazine icon-map-pin icon-map2 icon-menu-hamburger icon-menu-mobile-a icon-menu-mobile-b icon-menu-x icon-mywhitman-cog icon-news icon-phone icon-pinterest icon-play icon-quote icon-search-a icon-search-b icon-search-mobile-a icon-search-mobile-b icon-share icon-snail-mail icon-tumblr icon-twitter icon-vimeo icon-youtube logo-whitman-nc-flat logo-whitman-nc-stacked logo-whitman-no-clocktower slider-category-arrow-2px slider-category-arrow-no-line slider-category-arrow-solid slider-category-arrow slider-category-line-2px slider-category-line-solid slider-category-line tc_icon-filmstrip-fl tc_icon-filmstrip-ln tc_icon-play-fl-closed tc_icon-play-fl-open tc_icon-play-ln-closed tc_icon-play-ln-open wifi