charitable-remainder-trust

name	charitable-remainder-trust
title	Charitable Remainder Trust (CRT)
description	Drafts IRC 664–compliant Charitable Remainder Trust agreements (CRAT/CRUT), covering payout math, remainder qualification, trustee powers, and tax compliance. Use when drafting a CRT, CRAT, CRUT, unitrust, annuity trust, or charitable remainder planning document, or when ensuring IRC 664 compliance.
author	CaseMark
author_url	https://github.com/CaseMark/skills/tree/main/skills/legal/charitable-remainder-trust
license	Apache-2.0
version	0.1.0
execution_mode	open
jurisdiction	us
practice	trusts-and-estates
language	en
tags	["agreement","drafting","transactional"]

Charitable Remainder Trust (CRT)

Produces an execution-ready CRT agreement qualifying under IRC 664 and applicable state law. Supports both CRAT (fixed annuity) and CRUT (unitrust percentage) structures, including NICRUT/NIMCRUT variants.

Prerequisites

Gather before drafting:

1. Trust type: CRAT or CRUT; if CRUT, whether NICRUT or NIMCRUT applies.
2. Parties: Settlor, trustee(s), income beneficiary(ies), charitable remainder beneficiary(ies) or selection authority.
3. Funding: Asset list with FMV, valuation date, transfer documents; flag restricted or problematic assets.
4. Payout terms: Percentage or annuity amount, frequency, term (life/lives or up to 20 years).
5. Actuarial inputs: Must satisfy 10% remainder test and any CRAT probability test [VERIFY].
6. Governing law: State, venue, execution formalities (notary, witnesses, real property requirements).

Quick Start

1. Elect trust type (CRAT vs. CRUT) using the comparison below.
2. Draft core sections using article-style numbering and defined terms.
3. Insert payout math in the payout clause or as an appendix.
4. Select charitable beneficiary structure and add contingencies.
5. Run compliance checklist before finalizing.

CRAT vs. CRUT

Feature	CRAT	CRUT
Payout base	Fixed annuity on initial FMV	Annual % of annual FMV
Additional contributions	Prohibited	Permitted
Valuation	One-time initial	Annual valuation date
Variants	Standard only	Standard, NICRUT, NIMCRUT

Core Agreement Sections

Section	Required Content
Declaration	Settlor, trustee, beneficiaries; express intent to qualify under IRC 664 and Treas. Regs. §1.664-1 to §1.664-4.
Irrevocability	Expressly irrevocable; amendment only to maintain qualification or correct scrivener's error.
Funding	Asset description, valuation date, transfer warranties, trustee acceptance; restrictions on problematic assets.