What values do I enter into the “CRAT Payout” Field?
The data entered in the “CRAT Payout” field has to meet the following criteria:
- The amount entered has to be at least 5% of the FMV of Trust. Any value entered lower than that will be forced to 5%.
- The maximum value allowed for this input is 50%. The program will force anything above this amount down to 50%.
This field will allow for either a percentage or dollar amount based on the following:
- Values entered between 0-5 will be set to the minimum value of 5.
- Values entered as 5 to 50 will be used as a percentage.
- Values entered from 50.00001 to 100 will be set to the maximum amount allowed for a percentage, which is 50%.
- When using a percentage entry: 5 significant decimal places are allowed.
- If you enter a value over 100, it is assumed as a dollar amount.
- The same minimum and maximums apply (the amount has to be at least 5% and no greater than 50%). Example: If the FMV is $100,000, the minimum dollar amount would be $5,000, and the maximum would be $50,000.
- Note: If you choose to use the Optimizer for this model, it will default the payout to dollar amounts for more precision.