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.
The Virginia Sprinkling Trust for Children During Granter's Life, and for Surviving Spouse and Children after Granter's Death Crummyey Trust Agreement is a legal arrangement designed to provide financial support and protection for minors and surviving family members in Virginia. This trust agreement allows the granter (the individual establishing the trust) to distribute funds to their children during their lifetime while also ensuring the financial security of their spouse and children after their death. The Crummy Trust Agreement is a specific type of Virginia Sprinkling Trust that utilizes a unique provision known as the "Crummy Power." This provision allows the granter to gift funds to the trust each year, using the annual gift tax exclusion, while providing the beneficiaries (i.e., children) with the right to withdraw the gifted amount for a specific period of time. By utilizing this provision, the trust can take advantage of the gift tax exemption while still maintaining control over the funds. The Virginia Sprinkling Trust for Children During Granter's Life and for Surviving Spouse and Children after Granter's Death Crummyey Trust Agreement serves as a means to: 1. Provide financial support for children during the granter's life: The trust agreement allows for regular distributions of funds to be made to the granter's children during their lifetime. This ensures that the children have access to financial resources for education, healthcare, and other necessary expenses. The trust can be customized to determine the frequency and amount of distributions based on the granter's preferences and the needs of the children. 2. Protect the financial interests of the surviving spouse: In the event of the granter's death, the trust agreement ensures that the surviving spouse is provided for financially. The trust assets can be used to cover essential living expenses, healthcare costs, and other financial obligations. The terms of the trust, such as the duration and amount of support, can be outlined by the granter to accommodate the specific needs and desires of their surviving spouse. 3. Secure the future of children after the granter's death: The Crummy Trust provision allows for the transfer of assets to the children while minimizing potential estate taxes. Once the granter passes away, the trust assets are distributed among the children, providing ongoing financial support and protection. The trust agreement can specify various conditions and timelines for the distribution of assets to ensure that the children are supported in a responsible and impactful manner. By utilizing the Virginia Sprinkling Trust for Children During Granter's Life and for Surviving Spouse and Children after Granter's Death Crummyey Trust Agreement, individuals can tailor their estate planning to meet the specific needs of their family. This legal arrangement not only offers financial security to loved ones during the granter's life but also provides a comprehensive framework for the allocation of assets after their passing.The Virginia Sprinkling Trust for Children During Granter's Life, and for Surviving Spouse and Children after Granter's Death Crummyey Trust Agreement is a legal arrangement designed to provide financial support and protection for minors and surviving family members in Virginia. This trust agreement allows the granter (the individual establishing the trust) to distribute funds to their children during their lifetime while also ensuring the financial security of their spouse and children after their death. The Crummy Trust Agreement is a specific type of Virginia Sprinkling Trust that utilizes a unique provision known as the "Crummy Power." This provision allows the granter to gift funds to the trust each year, using the annual gift tax exclusion, while providing the beneficiaries (i.e., children) with the right to withdraw the gifted amount for a specific period of time. By utilizing this provision, the trust can take advantage of the gift tax exemption while still maintaining control over the funds. The Virginia Sprinkling Trust for Children During Granter's Life and for Surviving Spouse and Children after Granter's Death Crummyey Trust Agreement serves as a means to: 1. Provide financial support for children during the granter's life: The trust agreement allows for regular distributions of funds to be made to the granter's children during their lifetime. This ensures that the children have access to financial resources for education, healthcare, and other necessary expenses. The trust can be customized to determine the frequency and amount of distributions based on the granter's preferences and the needs of the children. 2. Protect the financial interests of the surviving spouse: In the event of the granter's death, the trust agreement ensures that the surviving spouse is provided for financially. The trust assets can be used to cover essential living expenses, healthcare costs, and other financial obligations. The terms of the trust, such as the duration and amount of support, can be outlined by the granter to accommodate the specific needs and desires of their surviving spouse. 3. Secure the future of children after the granter's death: The Crummy Trust provision allows for the transfer of assets to the children while minimizing potential estate taxes. Once the granter passes away, the trust assets are distributed among the children, providing ongoing financial support and protection. The trust agreement can specify various conditions and timelines for the distribution of assets to ensure that the children are supported in a responsible and impactful manner. By utilizing the Virginia Sprinkling Trust for Children During Granter's Life and for Surviving Spouse and Children after Granter's Death Crummyey Trust Agreement, individuals can tailor their estate planning to meet the specific needs of their family. This legal arrangement not only offers financial security to loved ones during the granter's life but also provides a comprehensive framework for the allocation of assets after their passing.
