Leave a Kingdom Legacy
Through K-LOVE

Learn More

Leave a Kingdom
Legacy Trough
K-LOVE

Learn More

Overview Booklet Calculator

Charitable Remainder Annuity Trust (CRAT)

A Charitable Remainder Annuity Trust (CRAT) is a smart way to support K-LOVE while receiving fixed annual income for life or a set number of years. This giving option allows you to make a significant gift using appreciated assets, reduce taxes, and leave a legacy rooted in faith.

Why create a CRAT?

A CRAT provides a reliable income stream while helping you steward your resources for eternal impact. You receive fixed payments each year, enjoy potential tax benefits, and at the end of the trust term, the remaining balance supports K-LOVE's Christ-centered mission.

This option is especially appealing if you want to avoid capital gains tax on appreciated assets while securing income for yourself or a loved one.

Benefits of a charitable remainder annuity trust

Receive fixed income for life or a set term (up to 20 years)
Avoid capital gains tax on the sale of appreciated assets used to fund the trust
Receive an immediate charitable income tax deduction
Make a lasting gift to support K-LOVE's ministry
Maintain financial security while creating Kingdom impact

How a CRAT works

You transfer cash or appreciated assets (such as stock or real estate) into a charitable remainder annuity trust.
The trust pays you (or your beneficiary) a fixed annual amount — calculated as a percentage of the initial gift value (at least 5%).
You receive a charitable deduction for a portion of your gift in the year the trust is created.
At the end of the trust term (or after your lifetime), the remaining value is distributed to K-LOVE to help continue sharing the hope of Jesus.

Note: The fixed payout does not change over time and is ideal for donors who value stable, predictable income.

Is a CRAT right for you?

A CRAT may be a good fit if you:

Want dependable income during retirement
Plan to sell appreciated assets but want to reduce taxes
Wish to make a large charitable gift over time
Prefer simplicity and financial stability in your giving

You will need to work with your attorney or financial advisor to create a CRAT. We're happy to collaborate with your advisory team to ensure your charitable goals are met.

Contact us

Please contact us with questions. We're here to help you determine whether a CRAT fits your goals.

Booklet

Download Booklet

Calculate Benefits

The charitable annuity trust calculator generates a printable presentation that shows how you can receive high fixed payments with tax free sale plus charitable tax deduction.

* Required fields

Help content opened below

Number of Beneficiaries

One Two

Click the appropriate button for a presentation of one or two beneficiaries. Selecting one beneficiary will cause the second beneficiary and the associated name and birthdate fields to be hidden from view.

First Beneficiary

Enter the name of the person. You may use such titles as "Mr.", "Mrs.", "Dr.", "Rev.", "Jr.", "Sr.", etc. For the remainder unitrust the first person is the first income recipient or beneficiary of the agreement.

First beneficiary is required

Birthdate

Month:

Day:

Year:

Please enter a valid birthdate for the first beneficiary

Please enter a valid birthdate for the second beneficiary

Birth month of the first beneficiary is required

Birth day of the first beneficiary is required

Birth year of the first beneficiary is required

Second Beneficiary

Second beneficiary is required

Birthdate

Month:

Day:

Year:

Please enter a valid birthdate for the second beneficiary

Birth month of the second beneficiary is required

Birth day of the second beneficiary is required

Birth year of the second beneficiary is required

Income Tax Rate

Select the current federal income tax rate of the donor. This will be used to project possible income tax savings. If you are uncertain about the correct rate, you may choose one of the middle rates. For many people, this will be close to their actual income tax rate.

Property Value $

Please enter a valid property value

Property value is required

Enter the amount of cash or the fair market value (FMV) of the asset(s) used to fund the CGA. For assets such as real estate, closely-held stock and other hard to value assets, the FMV is the appraised value of the property on the date of the gift.

Cost Basis $

Please enter a valid cost basis

Cost basis is required

Enter the cost basis of the asset being used to fund the trust or annuity. If the asset is cash, the cost basis is equal to the gift amount. If it is appreciated property, the cost basis will most likely be the amount you originally paid for the property. The cost basis is used to determine the capital gains tax which will be bypassed as a result of selling the asset. If the cost basis is not known or cannot be proven, the IRS assumes the cost basis to be $0. If cash funds the gift annuity, enter the same value as "Value of Property."

Current Return

Current return is required

Enter the current return or yield of the asset(s) which will be used to fund the gift agreement. For example, if the trust will be funded with public-traded stock which is currently paying a dividend of 3%, the current return yield is, in turn, 3%. If the gift is funded with vacant land or a personal residence (assuming the property is not leased), the current return would be 0%.

Trust Payout

Trust payout is required

Payout must be between 5% and 50%

Enter the percent income payout to the donor. You must select a trust percent payout of 5% or more.

Payment Frequency

Select either monthly, quarterly, semiannual, or annual income payments to the beneficiary(ies) of the income. The choice of payment frequency does affect the amount of the charitable deduction as the more frequent the payment (i.e. monthly as opposed to annually), the smaller the donor's tax deduction.

Maximum Payout Rate For 5% Probability Test Under Revenue Ruling 77-454 is less than minimum required 5% payout. Trust not permitted with this duration.

Leave a Kingdom Legacy Through K-LOVE

Leave a Kingdom Legacy Trough K-LOVE