The CRUT must distribute a fixed percentage annuity to the non-charitable beneficiary. This percentage may not be less than 5 percent nor more than 50 percent of the net fair market value of the CRUT's assets. The CRUT's assets are valued annually, and the annuity amount is determined at that time. As may be seen, the amount of the annuity might vary from year to year, but the percentage always stays the same. For example, assume a 10% CRUT is established, and assume the value of its portfolio holdings in year 1 is $1 million. The annuity that year is $100,000. Assume the portfolio drops in value, and in year 2 is worth $900,000. The annuity in year 2 will be reduced to $90,000 (10% of the value of the CRUT's assets).