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: Mississippi Sprinkling Trust, Children During Granter's Life, Surviving Spouse, Children after Granter's Death, Crummy Trust Agreement. The Mississippi Sprinkling Trust for Children During Granter's Life and for Surviving Spouse and Children after Granter's Death, also known as the Crummy Trust Agreement, is a legal arrangement that allows the granter to distribute assets to their children while they are alive and provide for their surviving spouse and children after their death. This type of trust provides flexibility and control over the disbursement of funds, ensuring that the granter's wishes are carried out. During the granter's life, the Mississippi Sprinkling Trust allows the assets to be "sprinkled" or distributed among the children. This means that the granter can choose when and how much money or assets to provide to each child according to their needs and preferences. By using this trust, the granter can maintain financial security for their children while retaining control over the distribution process. After the granter's death, the trust continues to provide for the surviving spouse and children. This ensures that the surviving spouse is taken care of and that the children receive their share of the assets according to the terms set by the granter. The Crummy Trust Agreement named after the Crummy v. Commissioner court case, provides specific provisions for gift tax purposes and allows beneficiaries to withdraw trust contributions made during the granter's lifetime, ensuring compliance with tax regulations. There may be different types of Mississippi Sprinkling Trusts depending on the specific goals and needs of the granter. Some variations include Irrevocable Mississippi Sprinkling Trust, Revocable Mississippi Sprinkling Trust, Testamentary Mississippi Sprinkling Trust, and Mississippi Sprinkling Trust with Special Needs Provision. These variations allow for customization of the trust to address various circumstances, such as asset protection, tax planning, or supporting beneficiaries with special needs. In conclusion, the Mississippi Sprinkling Trust for Children During Granter's Life and for Surviving Spouse and Children after Granter's Death, also known as the Crummy Trust Agreement, is a versatile and customizable legal arrangement that provides a comprehensive solution for estate planning. By utilizing this trust, the granter can ensure the prudent management and distribution of their assets throughout their life and beyond, safeguarding the financial well-being of their loved ones.
