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How to model being the beneficiary of a Charitable Remainder Unitrust (CRUT)

 

(@ctrangsrud)
New Member Customer
Joined: 3 weeks ago
Posts: 2
Topic starter  

I am just getting started with Pralana Gold and reading through the manual. One account type I am not sure the correct way to model is being the beneficiary of a Charitable Remainder UniTrust (CRUT).

I see that a Charitable Trust can be modeled, but it seems to be set up as though I would be the one making the contribution and receiving the tax donation. In my situation, my parents will be the one contributing to a CRUT upon their passing, with me being listed as the beneficiary. Would I model this as just an Annuity or Pension? Should I use the Charitable Trust section with an initial contribution of zero and tax deduction of zero?

It will pay annual adjusted distributions (based on a fixed percent of the account balance) for the remainder of my lifetime.


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(@smatthews51)
Member Admin
Joined: 2 years ago
Posts: 345
 

NC_Chris,

I think a reasonable way to model this would be to use one of the Other Income streams on the Income page. That will enable you to specify the start and end (if any) year, the annual amount, a COLA and the taxation type for you.

Stuart Matthews


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(@ctrangsrud)
New Member Customer
Joined: 3 weeks ago
Posts: 2
Topic starter  

@smatthews51

Thank you, I'll give that a try!


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(@madison575)
New Member Customer
Joined: 2 years ago
Posts: 1
 

I have been using this approach suggested by Stuart. I create two Other Income entries, one representing the approximate amount of the CRT payout that is Cap Gains, and a second one representing the approximate amount of the CRT payout that is regular income. This seems to fairly accurately handle the payouts in our case.


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