Charitable Remainder Trusts in Utah: A Complete Guide

Introduction

A Charitable Remainder Trust (CRT) is a powerful estate planning tool that allows you to support a charity you care about while providing financial benefits to yourself or your loved ones. It’s a unique way to combine philanthropy with tax savings, income generation, and long-term legacy planning.

At Cutler | Riley Law, we help Utah families and individuals create CRTs that maximize both charitable impact and family benefits.

What Is a Charitable Remainder Trust?

A Charitable Remainder Trust is an irrevocable trust that provides income to one or more beneficiaries for a set period of time (often their lifetime). When that term ends, the “remainder” of the trust passes to a chosen charity.

This arrangement allows you to:

  • Receive an income stream during life.

  • Reduce or defer capital gains taxes when highly appreciated assets are sold.

  • Take advantage of a charitable income tax deduction in the year the trust is created.

  • Leave a lasting gift to a cause that matters to you.

How a CRT Works: Step by Step

  1. Create the Trust – You (the grantor) establish the CRT and choose the charity that will eventually receive the remainder.

  2. Fund the Trust – You transfer assets into the trust, such as real estate, stocks, or business interests.

  3. Sell Assets (Tax-Deferred) – The trust can sell appreciated assets without immediate capital gains taxes, allowing reinvestment into income-producing investments.

  4. Receive Income – You or other named beneficiaries receive annual income, typically for life or up to 20 years.

  5. Charitable Remainder – After the term ends, the remaining assets pass to the charity.

Types of Charitable Remainder Trusts

There are two main kinds of CRTs, and the right one depends on how you want income distributed:

1. Charitable Remainder Annuity Trust (CRAT)

  • Pays a fixed dollar amount each year, determined when the trust is created.

  • Payments remain the same regardless of investment performance.

  • Good for those who want predictable income.

2. Charitable Remainder Unitrust (CRUT)

  • Pays a fixed percentage of the trust’s value, recalculated annually.

  • Payments can rise (or fall) depending on investment performance.

  • Offers growth potential and can keep pace with inflation.

Benefits of a Charitable Remainder Trust

  • Tax Savings –

    • Deferral of capital gains on highly appreciated assets.

    • Immediate charitable income tax deduction (based on the charity’s projected remainder interest).

  • Lifetime Income – Create a steady income stream for you or loved ones.

  • Philanthropic Legacy – Support causes and organizations important to you.

  • Estate Planning Tool – Reduce the size of your taxable estate, potentially lowering estate taxes.

Considerations Before Creating a CRT

  • CRTs are irrevocable — once created, you can’t take assets back.

  • Requires choosing a qualified charitable organization.

  • Works best for individuals with highly appreciated assets (real estate, stocks, or businesses).

  • Professional management is important — trustees must follow IRS rules carefully.

Example Scenario

Imagine a Utah couple owns highly appreciated stock worth $1,000,000 with a cost basis of $100,000. If they sold it outright, they could face hundreds of thousands in capital gains taxes.

Instead, they transfer the stock into a Charitable Remainder Unitrust (CRUT):

  • The trust sells the stock without immediate capital gains tax.

  • The proceeds are reinvested to produce income.

  • The couple receives annual income for life.

  • They receive a charitable tax deduction in the year of transfer.

  • At their passing, the remainder goes to their chosen charity.

Charitable Remainder Trust Fees at Cutler | Riley Law

At Cutler | Riley Law, we draft Charitable Remainder Trusts for a flat fee of $3,500. This includes:

  • Custom trust design

  • Drafting and funding the trust

  • Coordination with your financial advisor and CPA

  • Guidance on IRS compliance

Why Choose Cutler | Riley Law?

  • Experience – We focus exclusively on estate planning and advanced trusts.

  • Flat-Fee Pricing – No hidden costs, no surprises.

  • Trusted Reputation – With 600+ five-star reviews, Utah families turn to us for clarity and confidence.

  • Personalized Service – We explain every step in plain English and tailor your trust to your goals.

Next Steps

If you want to support a cause you care about while enjoying tax benefits and lifetime income, a Charitable Remainder Trust could be the perfect solution.

Schedule your free consultation today to explore whether a CRT is right for you.