Charitable Remainder Trust (CRT) Template

This Charitable Remainder [Annuity/Unitrust] Trust Agreement is made on [Date] by [Grantor Name(s)] ("Grantor") and [Trustee Name] ("Trustee").

Article I – Trust Formation

• Grantor transfers property described in Schedule A to Trustee to hold, invest, and administer as a charitable remainder [annuity/unitrust] under IRC § 664.

Article II – Annuity/Unitrust Payments

• Payout type: ☐ Annuity (fixed $[Amount]) ☐ Unitrust ([Percentage]% of annual fair market value of trust assets).
• Payment frequency (quarterly/annual) to Beneficiary(ies): [Name(s)].
• Term: [Life of beneficiary(ies) / term of years (max 20 years)].
• Payment commencement date and prorated payments if necessary.
• Additional provisions for make-up accounts (for net income with makeup unitrusts) or inflation adjustments (for FLIP unitrusts).

Article III – Income and Principal

• Trustee authorized to allocate receipts between income and principal consistent with applicable law and trust terms.

Article IV – Charitable Remainder Beneficiary

• Upon termination, remainder distributed to [Charitable Organization(s)] described in Schedule B, each a qualified § 170(c) charity.
• Provision for alternate charities if primary charity no longer qualifies.

Article V – Trustee Powers and Duties

• Investment authority, asset management, power to retain, sell, reinvest.
• Authority to hire advisors, delegate functions, and rely on valuations.
• Duty to maintain records, provide annual statements, and file Form 5227 and state filings.

Article VI – Restrictions

• No additional contributions (if CRT type prohibits) or specify acceptance conditions.
• Prohibit acts causing trust to cease qualifying (self-dealing, excess business holdings, jeopardizing investments).

Article VII – Trustee Compensation and Expenses

• Trustee compensation as permitted by law or agreement.
• Reimbursement of reasonable expenses and taxes.

Article VIII – Resignation and Removal of Trustee

• Procedure for resignation (written notice, successor trustee appointment).
• Removal by Grantor or beneficiaries with cause; successor trustee designations.

Article IX – Spendthrift Provision

• Beneficiaries’ interests not assignable or subject to creditors.

Article X – Governing Law and Construction

• Trust governed by laws of [State].
• Interpretation consistent with IRC § 664 and Treasury Regulations.

Article XI – Miscellaneous

• Severability, merger, counterpart execution.
• Valuation method for unitrust (annual valuation date, permitted valuation adjustments).
• Compliance with private foundation rules (self-dealing, taxable expenditures).

Article XII – Signatures

Grantor: ____ Date: __

Trustee: ____ Date: __

Schedules

• Schedule A: Description of initial trust property.
• Schedule B: Charitable remainder beneficiaries and percentages.
• Schedule C: Life expectancy tables or term calculations (if applicable).

Ensure trust satisfies IRS sample language requirements and obtain legal/tax review before execution.