Charitable Remainder Trusts
- Typical userHighly appreciated assets, charitable intent
- IRS scrutinyYellow
- Sponsors1
Overview
A trust pays you income for years, then the remainder goes to charity. It can spread out the tax on a large gain.
IRS scrutiny
Accepted when documented carefully, and the IRS reviews it more often.
Common questions
How much has to go to charity for a charitable remainder unitrust to qualify?
The annual payout must be a fixed percentage between 5% and 50% of the trust's value, revalued each year, and the value of the charity's remainder must be at least 10% of the net fair market value of the property at each contribution.
Source: 26 U.S.C. §664(d)(2)
Is a charitable remainder trust a listed transaction?
No. A properly run charitable remainder trust is not listed. The IRS does list certain trust distributions described in Treas. Reg. §1.643(a)-8, and final regulations effective July 9, 2026 list a separate arrangement that pairs a charitable remainder annuity trust with a single-premium annuity.
Sources: IRS, Listed transactions; Final regulations, Charitable Remainder Annuity Trust Listed Transaction (July 9, 2026)
Sponsors that offer this strategy
- Valur, Inc. Unclaimed 54/100 · Weak evidence Public record
Advisors who offer this strategy
- Allworth Financial Unclaimed SEC-registered investment adviser (CRD 111167) Public record