A Charitable Remainder Trust (CRT) is a type of irrevocable trust that allows you to donate assets to a charity while retaining the right to receive income from those assets for a period of time. This calculator will help you estimate potential outcomes, but it is not a substitute for professional financial or legal advice.
function calculateCRT() {
var trustValue = parseFloat(document.getElementById("trustValue").value);
var incomeRate = parseFloat(document.getElementById("incomeRate").value);
var trustTermYears = parseInt(document.getElementById("trustTermYears").value);
var annualGrowthRate = parseFloat(document.getElementById("annualGrowthRate").value);
var discountRate = parseFloat(document.getElementById("discountRate").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = "; // Clear previous results
// Input validation
if (isNaN(trustValue) || trustValue <= 0 ||
isNaN(incomeRate) || incomeRate 100 ||
isNaN(trustTermYears) || trustTermYears <= 0 ||
isNaN(annualGrowthRate) || annualGrowthRate < 0 ||
isNaN(discountRate) || discountRate < 0) {
resultDiv.innerHTML = "Please enter valid positive numbers for all fields. Income Rate, Annual Growth Rate, and Discount Rate should be between 0-100 (for percentages).";
return;
}
// Convert percentages to decimals
var incomeRateDecimal = incomeRate / 100;
var annualGrowthRateDecimal = annualGrowthRate / 100;
var discountRateDecimal = discountRate / 100;
var annualIncomePayments = [];
var projectedTrustValueOverTime = [];
var projectedCharitableValue = 0;
var currentTrustValue = trustValue;
for (var i = 0; i < trustTermYears; i++) {
// Calculate annual income payment
var annualPayment = currentTrustValue * incomeRateDecimal;
annualIncomePayments.push(annualPayment);
// Project trust value for next year
currentTrustValue = currentTrustValue * (1 + annualGrowthRateDecimal) – annualPayment;
if (currentTrustValue < 0) { // Ensure trust value doesn't go negative
currentTrustValue = 0;
}
projectedTrustValueOverTime.push({ year: i + 1, value: currentTrustValue });
}
// Calculate the present value of the future charitable gift
// This is a simplification, a more precise calculation involves actuarial tables
// For demonstration, we'll discount the final projected trust value.
projectedCharitableValue = currentTrustValue / Math.pow((1 + discountRateDecimal), trustTermYears);
var totalIncomeReceived = annualIncomePayments.reduce(function(sum, payment) {
return sum + payment;
}, 0);
var outputHTML = "
Estimated Outcomes:
";
outputHTML += "Total Income Received by Beneficiary: $" + totalIncomeReceived.toFixed(2) + "";
outputHTML += "Estimated Final Value of Trust for Charity: $" + currentTrustValue.toFixed(2) + "";
outputHTML += "Estimated Present Value of Charitable Gift: $" + projectedCharitableValue.toFixed(2) + "";
outputHTML += "