An irrevocable trust established to qualify contributions for the annual federal gift tax exclusion for gifts of a present interest. The trust is named Crummey because of a case involving a family named Crummey. The trust contains Crummey Powers, enabling a beneficiary to withdraw assets contributed to the trust for a limited period of time.
Keywords: Massachusetts, Sprinkling Trust, Children, Granter's Life, Surviving Spouse, Crummy Trust Agreement The Massachusetts Sprinkling Trust for Children During the Granter's Life, and for the Surviving Spouse and Children after the Granter's Death, commonly referred to as the Crummy Trust Agreement, is a legal arrangement designed to provide financial support and inheritance planning for both minor children and surviving family members in Massachusetts. This trust allows the granter to distribute assets and income to their children during their lifetime while also ensuring that the surviving spouse and children continue to benefit from the trust after the granter's passing. There are various types of Massachusetts Sprinkling Trusts that can be established, depending on the specific needs and preferences of the granter. One common type is the "Revocable Sprinkling Trust," which allows the granter to maintain control over the trust assets during their lifetime. With this trust, the granter has the flexibility to alter the trust provisions, including the beneficiaries and distribution amounts, as circumstances change. Another type is the "Irrevocable Sprinkling Trust," which is created when the granter transfers assets into the trust and relinquishes control over them. In this case, the granter cannot make changes to the trust terms, ensuring that the assets and income are protected and distributed according to the predetermined guidelines, even after the granter's death. The Crummy Trust Agreement, named after the Crummy v. Commissioner court case, is a common feature in both types of Massachusetts Sprinkling Trusts. This agreement allows the granter to make annual exclusion gifts to the trust beneficiaries, typically the children, without incurring gift tax liability. By providing the beneficiaries with a limited period to withdraw the gifted amounts, the Crummy Trust Agreement makes the contributions eligible for the annual gift tax exclusion. The Crummy Trust Agreement provides a mechanism for the granter to transfer assets while minimizing tax consequences and ensuring the ongoing financial well-being of their children and surviving spouse. It offers the flexibility to structure distributions based on the granter's preferences and the beneficiaries' needs, allowing for financial support during the granter's life and beyond. In summary, the Massachusetts Sprinkling Trust for Children During the Granter's Life, and for the Surviving Spouse and Children after the Granter's Death Crummyey Trust Agreement, offers an estate planning solution that addresses the needs of the granter, their children, and their surviving spouse. This legal arrangement provides a comprehensive framework for asset distribution and financial support while minimizing tax implications and ensuring the granter's wishes are carried out.Keywords: Massachusetts, Sprinkling Trust, Children, Granter's Life, Surviving Spouse, Crummy Trust Agreement The Massachusetts Sprinkling Trust for Children During the Granter's Life, and for the Surviving Spouse and Children after the Granter's Death, commonly referred to as the Crummy Trust Agreement, is a legal arrangement designed to provide financial support and inheritance planning for both minor children and surviving family members in Massachusetts. This trust allows the granter to distribute assets and income to their children during their lifetime while also ensuring that the surviving spouse and children continue to benefit from the trust after the granter's passing. There are various types of Massachusetts Sprinkling Trusts that can be established, depending on the specific needs and preferences of the granter. One common type is the "Revocable Sprinkling Trust," which allows the granter to maintain control over the trust assets during their lifetime. With this trust, the granter has the flexibility to alter the trust provisions, including the beneficiaries and distribution amounts, as circumstances change. Another type is the "Irrevocable Sprinkling Trust," which is created when the granter transfers assets into the trust and relinquishes control over them. In this case, the granter cannot make changes to the trust terms, ensuring that the assets and income are protected and distributed according to the predetermined guidelines, even after the granter's death. The Crummy Trust Agreement, named after the Crummy v. Commissioner court case, is a common feature in both types of Massachusetts Sprinkling Trusts. This agreement allows the granter to make annual exclusion gifts to the trust beneficiaries, typically the children, without incurring gift tax liability. By providing the beneficiaries with a limited period to withdraw the gifted amounts, the Crummy Trust Agreement makes the contributions eligible for the annual gift tax exclusion. The Crummy Trust Agreement provides a mechanism for the granter to transfer assets while minimizing tax consequences and ensuring the ongoing financial well-being of their children and surviving spouse. It offers the flexibility to structure distributions based on the granter's preferences and the beneficiaries' needs, allowing for financial support during the granter's life and beyond. In summary, the Massachusetts Sprinkling Trust for Children During the Granter's Life, and for the Surviving Spouse and Children after the Granter's Death Crummyey Trust Agreement, offers an estate planning solution that addresses the needs of the granter, their children, and their surviving spouse. This legal arrangement provides a comprehensive framework for asset distribution and financial support while minimizing tax implications and ensuring the granter's wishes are carried out.
