Fairfax Virginia Acuerdo de fideicomiso Crummey para el beneficio del niño con los padres como fideicomitentes - Crummey Trust Agreement for Benefit of Child with Parents as Trustors

• Category: Fideicomisos - Bypass y Aspersión - Convenios Crummey
• State: Multi-State
• County: Fairfax
• Control #: US-0641BG
• Format: Word

Description

In a Crummey trust, parents place gift money into a trust and give their child (or other recipient) the right to withdraw the amount of each gift for up to 30 days after each gift is made. Since the withdrawal right begins immediately after the gift is ma Fairfax Virginia Crummy Trust Agreement for Benefit of Child with Parents as Trustees is a legal arrangement that allows parents in Fairfax, Virginia, to set aside assets for their child's benefit while utilizing the Crummy power. The Crummy power is named after the Crummy v. Commissioner court case, which established that trust beneficiaries have a limited right to withdraw contributions made to the trust, thus qualifying them for gift tax exclusion. By utilizing this power, the trust can offer tax advantages to the trustees (parents) while securing financial security for their child. There are several types of Fairfax Virginia Crummy Trust Agreements for Benefit of Child with Parents as Trustees, which include: 1. Irrevocable Life Insurance Trust (IIT): This type of trust is commonly used to fund life insurance policies. The trust is created and assets are contributed by the trustees, which are then used to pay the insurance premiums. Upon the death of the trustees, the insurance proceeds are paid into the trust, providing financial support for the child. 2. Educational Trust: This trust is specifically designed to provide funds for the child's education. The trustees contribute assets that are then invested and grow over time. When the child reaches a certain age or specific educational milestones, the trust can distribute funds for educational expenses. 3. Special Needs Trust: A Special Needs Trust is established to benefit a child with special needs. This trust ensures that assets set aside for the child's benefit do not affect their eligibility for government assistance programs. The trustees can contribute assets while carefully structuring the distributions to supplement the child's needs without jeopardizing their assistance. 4. Dynasty Trust: Also known as a "generation-skipping trust," this type of trust is designed to transfer wealth and assets to future generations while minimizing estate taxes. The trustees can transfer a significant amount of assets into the trust, which will be managed for the benefit of the child. The trust's provisions can span multiple generations, allowing wealth to grow and pass down over time. In summary, the Fairfax Virginia Crummy Trust Agreement for Benefit of Child with Parents as Trustees is a versatile legal instrument that allows parents to protect and provide for their child's future financial needs. Various types of these trusts, such as the Irrevocable Life Insurance Trust, Educational Trust, Special Needs Trust, Dynasty Trust, cater to specific circumstances and goals of the trustees while maximizing the tax advantages offered by the Crummy power.

Fairfax Virginia Crummy Trust Agreement for Benefit of Child with Parents as Trustees is a legal arrangement that allows parents in Fairfax, Virginia, to set aside assets for their child's benefit while utilizing the Crummy power. The Crummy power is named after the Crummy v. Commissioner court case, which established that trust beneficiaries have a limited right to withdraw contributions made to the trust, thus qualifying them for gift tax exclusion. By utilizing this power, the trust can offer tax advantages to the trustees (parents) while securing financial security for their child. There are several types of Fairfax Virginia Crummy Trust Agreements for Benefit of Child with Parents as Trustees, which include: 1. Irrevocable Life Insurance Trust (IIT): This type of trust is commonly used to fund life insurance policies. The trust is created and assets are contributed by the trustees, which are then used to pay the insurance premiums. Upon the death of the trustees, the insurance proceeds are paid into the trust, providing financial support for the child. 2. Educational Trust: This trust is specifically designed to provide funds for the child's education. The trustees contribute assets that are then invested and grow over time. When the child reaches a certain age or specific educational milestones, the trust can distribute funds for educational expenses. 3. Special Needs Trust: A Special Needs Trust is established to benefit a child with special needs. This trust ensures that assets set aside for the child's benefit do not affect their eligibility for government assistance programs. The trustees can contribute assets while carefully structuring the distributions to supplement the child's needs without jeopardizing their assistance. 4. Dynasty Trust: Also known as a "generation-skipping trust," this type of trust is designed to transfer wealth and assets to future generations while minimizing estate taxes. The trustees can transfer a significant amount of assets into the trust, which will be managed for the benefit of the child. The trust's provisions can span multiple generations, allowing wealth to grow and pass down over time. In summary, the Fairfax Virginia Crummy Trust Agreement for Benefit of Child with Parents as Trustees is a versatile legal instrument that allows parents to protect and provide for their child's future financial needs. Various types of these trusts, such as the Irrevocable Life Insurance Trust, Educational Trust, Special Needs Trust, Dynasty Trust, cater to specific circumstances and goals of the trustees while maximizing the tax advantages offered by the Crummy power.

Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.