New Hampshire Crummey Trust Agreement for Benefit of Child with Parents as Trustors

• Category: Trusts - Bypass
• State: Multi-State
• Control #: US-0641BG
• Format: Word; Rich Text

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 A New Hampshire Crummy Trust Agreement for the Benefit of a Child with Parents as Trustees is a legal document that serves as a means to gift assets to a child while providing the parents with certain beneficial terms and control over the trust. This type of trust is commonly used for estate planning purposes and offers various advantages for both the child and the parents. New Hampshire allows for different types of Crummy Trust Agreements, each offering specific features and benefits. These may include: 1. Irrevocable Crummy Trust: This is a trust that cannot be modified or terminated without the consent of the beneficiary (the child) once assets have been transferred to the trust. It ensures that the assets are protected and preserved for the child's future benefit. 2. Crummy Life Insurance Trust: This type of trust combines the benefits of a Crummy Trust Agreement with life insurance policies. It allows the trustees (the parents) to use the annual gift tax exclusion by transferring money into the trust, from which the premiums for life insurance policies are paid. 3. Crummy Special Needs Trust: This trust is designed for children with special needs, providing the necessary financial support while preserving eligibility for government benefits. It allows for the management of financial resources to enhance the child's quality of life. 4. Crummy Testamentary Trust: This trust is established through a will and becomes effective upon the trust or's death. It allows the parents to direct how the trust assets will be distributed to the child after their passing. A New Hampshire Crummy Trust Agreement allows the parents to make annual gifts to the trust, which qualify for the annual gift tax exclusion. By utilizing the Crummy provision, the trustees provide the child with limited withdrawal rights, typically for a short period after the gift is made. This provision helps ensure that the gift qualifies for the annual gift tax exclusion, as the child has the opportunity to withdraw the gifted amount if desired. If the child does not exercise this right, the assets remain in the trust to grow and benefit the child's future. The New Hampshire Crummy Trust Agreement for the Benefit of a Child with Parents as Trustees is an effective and flexible estate planning tool that allows parents to provide for their child's financial well-being while maintaining control over the gifted assets. It is essential to consult with an experienced attorney specializing in estate planning and trust law to draft a tailored trust agreement that meets the specific needs and goals of the parents and the child.

A New Hampshire Crummy Trust Agreement for the Benefit of a Child with Parents as Trustees is a legal document that serves as a means to gift assets to a child while providing the parents with certain beneficial terms and control over the trust. This type of trust is commonly used for estate planning purposes and offers various advantages for both the child and the parents. New Hampshire allows for different types of Crummy Trust Agreements, each offering specific features and benefits. These may include: 1. Irrevocable Crummy Trust: This is a trust that cannot be modified or terminated without the consent of the beneficiary (the child) once assets have been transferred to the trust. It ensures that the assets are protected and preserved for the child's future benefit. 2. Crummy Life Insurance Trust: This type of trust combines the benefits of a Crummy Trust Agreement with life insurance policies. It allows the trustees (the parents) to use the annual gift tax exclusion by transferring money into the trust, from which the premiums for life insurance policies are paid. 3. Crummy Special Needs Trust: This trust is designed for children with special needs, providing the necessary financial support while preserving eligibility for government benefits. It allows for the management of financial resources to enhance the child's quality of life. 4. Crummy Testamentary Trust: This trust is established through a will and becomes effective upon the trust or's death. It allows the parents to direct how the trust assets will be distributed to the child after their passing. A New Hampshire Crummy Trust Agreement allows the parents to make annual gifts to the trust, which qualify for the annual gift tax exclusion. By utilizing the Crummy provision, the trustees provide the child with limited withdrawal rights, typically for a short period after the gift is made. This provision helps ensure that the gift qualifies for the annual gift tax exclusion, as the child has the opportunity to withdraw the gifted amount if desired. If the child does not exercise this right, the assets remain in the trust to grow and benefit the child's future. The New Hampshire Crummy Trust Agreement for the Benefit of a Child with Parents as Trustees is an effective and flexible estate planning tool that allows parents to provide for their child's financial well-being while maintaining control over the gifted assets. It is essential to consult with an experienced attorney specializing in estate planning and trust law to draft a tailored trust agreement that meets the specific needs and goals of the parents and the child.