Charitable Protection Trust (CPT) Estimator

49–90% to CPT • §643(b) allocation to principal • Trust §642(c) charitable deduction Cutler Riley flat setup: $20,000 • Typical peers: $20k–$50k

Assign 49–90% of non-W-2 income to a non-grantor CPT. The trustee donates at least 10% of trust gross to charity (fully deductible to the trust under §642(c)) and can allocate the remainder to principal under §643(b) in good faith. Distributions are taxable to recipients; amounts retained in principal compound until distributed.

K-1s, dividends, interest, rentals, etc.
Adjust within 49–90% based on planning goals and eligibility.
Taxable to the recipient when distributed.
Applied to: Without — personal gift % of total income (≤60% deduction). With CPT — trust gift % of trust gross, fully deductible under §642(c).
Modeled 50% to trust (allocated to principal) / 50% to client (taxed).
Ignored if capital gain is 0.
Defaults: trust principal growth 5%/yr; all trust receipts treated as passive → principal; no trust-level tax modeled; annual fees = trustee $3,000 + CPA $1,500; setup $20,000 in Year 1; MFJ std. deduction $30k; NIIT/SALT/carryforwards ignored; planning aid only. Separate bookkeeping costs may apply.