CRUTs: A Flexible Giving Strategy for High-Net-Worth Families
Charitable giving is often about more than generosity—it’s about alignment. Alignment between legacy and liquidity. Between values and tax efficiency. Between giving today and providing for family tomorrow.
A Charitable Remainder Unitrust (CRUT) offers a powerful way to pursue all of these objectives within a single structure. It’s a flexible planning vehicle that enables you to donate appreciated assets, generate income, potentially reduce estate taxes, and support the causes you care about—all while maintaining a measure of control and financial security.
What is a CRUT?
A CRUT is a type of irrevocable trust that provides two key benefits: an income stream for the donor (or other non-charitable beneficiaries), and a charitable gift at the end of the trust’s term.
You contribute assets—often highly appreciated stock, private equity interests, or real estate—to the trust. In return, the trust pays you (or your designee) a fixed percentage of the trust’s value each year, recalculated annually. When the trust ends, typically at your death or after a term of up to 20 years, the remainder is distributed to a qualified charitable organization.
How CRUTs may benefit high-net-worth donors
One of the most appealing features of a CRUT is its ability to defer—and in some cases, reduce—income taxation on appreciated assets. When you contribute those assets to the trust, the trust itself can sell them without triggering capital gains tax, since charitable trusts are tax-exempt entities. That means the full, untaxed value of the asset can be reinvested and used to generate income.
You’ll also receive an immediate charitable income tax deduction, based on the present value of the remainder interest ultimately going to charity. The exact deduction depends on factors such as your age, the term of the trust, interest rates and the payout rate, but for many donors, it provides meaningful near-term tax relief.
And because the assets you contribute to the CRUT will not be taxable in your estate, a well-timed gift can reduce or eliminate estate taxes. As of 2025, the estate tax exemption is $13.61 million per individual, but a recently passed House bill proposes increasing that figure to $15 million per person and making it permanent.1 While the future of this legislation remains uncertain, CRUTs provide flexibility in planning regardless of the outcome.
What to consider before establishing a CRUT
Despite their advantages, CRUTs aren’t for everyone. Once assets are transferred to the trust, the decision is irrevocable. You can’t change your mind or retrieve the principal. You also relinquish control over how the trust is managed, unless you name yourself as trustee or appoint someone closely aligned with your investment approach.
CRUTs must comply with specific IRS rules. The trust must distribute no less than 5% and no more than 50% of its annually revalued assets each year, and actuarily at least 10% of the initial value must intended to be for the charitable beneficiary.2 These rules ensure that CRUTs serve their intended purpose: balancing donor benefit with charitable intent.
Another consideration is how a CRUT affects your heirs. Because the remainder goes to charity, your children or grandchildren will not receive any direct inheritance from the trust. Some families address this by using a portion of the CRUT’s income to fund a life insurance policy held in an irrevocable life insurance trust (ILIT), thereby “replacing” the value for the next generation. This is sometimes referred to as a “wealth replacement trust” strategy.
When a CRUT may be right for you
CRUTs can be particularly effective for individuals with complex wealth, philanthropic intent, and highly appreciated assets. You might consider a CRUT if:
- You’re holding a concentrated position. Donating appreciated stock to a CRUT lets you sell and diversify the investment inside the trust without triggering capital gains tax right away.
- You value structured generosity. The trust enables you to support a favorite cause while maintaining income and tax control.
- You’re focused on estate planning. Removing the assets from your estate may reduce or eliminate future estate tax liabilities.
CRUTs can also be integrated into broader planning strategies that include family foundations, donor-advised funds or other charitable vehicles.
Final thoughts
A Charitable Remainder Unitrust isn’t just a giving strategy, it’s a planning tool that allows you to pursue generosity, tax efficiency and long-term financial control in parallel. For high-net-worth individuals with complex estates and multigenerational goals, it can be a highly effective bridge between today’s financial needs and tomorrow’s legacy impact.
If you’re considering a CRUT or wondering how to integrate charitable planning into your overall wealth strategy, connect with your Corient Wealth Advisor. We’ll help you evaluate whether this structure aligns with your values and your vision.
1 https://www.kiplinger.com/taxes/big-gop-tax-bill-could-change-your-estate-planning
2 https://www.irs.gov/charities-non-profits/charitable-remainder-trusts
ABOUT THE AUTHOR
John Schuman
John is a Partner, Head of Wealth Transfer at Corient, based in our Columbus, OH, office. Previously, he was a Partner, Co-CEO and President of legacy firm Budros, Ruhlin & Roe. As a CERTIFIED FINANCIAL PLANNER™ certificant, licensed attorney and former Certified Public Accountant (CPA), he adds an exceptional perspective to the firm. John’s expertise includes estate planning and taxation, income tax, general business and succession planning, and charitable and retirement planning. He has been a featured speaker at conferences of the Columbus Bar Association, the Financial Planning Association (FPA), the National Association of Personal Financial Advisors (NAPFA), the Ohio CLE Institute, The Columbus Foundation and the International Association of Advisors in Philanthropy.
John holds a Bachelor of Science from The Ohio State University and a Juris Doctorate from Capital University Law School (summa cum laude). John is a member of the Financial Planning Association (FPA), the National Association of Personal Financial Advisors (NAPFA), and the Columbus, State of Ohio and American Bar Associations. He also serves as a member of the Professional Council of The Columbus Foundation.
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