Washington 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 The Washington Crummy Trust Agreement for the Benefit of a Child with Parents as Trustees is a legal document that establishes a trust for the financial well-being and future of a child. This type of trust arrangement allows parents to contribute assets to the trust while retaining some control over the distribution of those assets. A Washington Crummy Trust is named after the landmark case of Crummy v. Commissioner, which established the legal framework for this type of trust. It allows parents to make annual contributions to the trust, which qualifies for the annual gift tax exclusion as long as certain conditions are met. Under this agreement, parents act as trustees, meaning they create the trust and contribute assets to it. The trust is established for the benefit of a child, who will be the beneficiary and ultimately receive the trust's assets according to the terms and conditions outlined in the trust document. While the Washington Crummy Trust Agreement serves a general purpose of providing financial support and protection for a child, there can be variations or subtypes of this trust arrangement. These variations may include: 1. Educational Crummy Trust: This type of trust focuses primarily on funding a child's education expenses. The assets held within this trust can be used solely for educational purposes, such as tuition fees, books, and educational resources. 2. Medical Crummy Trust: A trust designed specifically to cover the child's medical needs and expenses. Parents fund the trust and can use the assets to pay for medical treatments, health insurance, and any other medical costs related to the child's well-being. 3. Special Needs Crummy Trust: This trust is created for children with special needs or disabilities. The assets held within the trust are used to provide for the child's specific requirements, such as therapeutic services, assistive devices, and specialized care. In each of these variations, the parents as trustees retain the ability to control and manage the trust assets within the legal boundaries. They typically include provisions to determine how and when the child receives distributions, ensuring the child's financial needs are met while safeguarding the assets from mismanagement or unintended consequences. Overall, the Washington Crummy Trust Agreement for the Benefit of a Child with Parents as Trustees provides a flexible and customizable method for parents to set aside assets for their child's future financial needs, while still maintaining some degree of control over the trust's management and distributions.

The Washington Crummy Trust Agreement for the Benefit of a Child with Parents as Trustees is a legal document that establishes a trust for the financial well-being and future of a child. This type of trust arrangement allows parents to contribute assets to the trust while retaining some control over the distribution of those assets. A Washington Crummy Trust is named after the landmark case of Crummy v. Commissioner, which established the legal framework for this type of trust. It allows parents to make annual contributions to the trust, which qualifies for the annual gift tax exclusion as long as certain conditions are met. Under this agreement, parents act as trustees, meaning they create the trust and contribute assets to it. The trust is established for the benefit of a child, who will be the beneficiary and ultimately receive the trust's assets according to the terms and conditions outlined in the trust document. While the Washington Crummy Trust Agreement serves a general purpose of providing financial support and protection for a child, there can be variations or subtypes of this trust arrangement. These variations may include: 1. Educational Crummy Trust: This type of trust focuses primarily on funding a child's education expenses. The assets held within this trust can be used solely for educational purposes, such as tuition fees, books, and educational resources. 2. Medical Crummy Trust: A trust designed specifically to cover the child's medical needs and expenses. Parents fund the trust and can use the assets to pay for medical treatments, health insurance, and any other medical costs related to the child's well-being. 3. Special Needs Crummy Trust: This trust is created for children with special needs or disabilities. The assets held within the trust are used to provide for the child's specific requirements, such as therapeutic services, assistive devices, and specialized care. In each of these variations, the parents as trustees retain the ability to control and manage the trust assets within the legal boundaries. They typically include provisions to determine how and when the child receives distributions, ensuring the child's financial needs are met while safeguarding the assets from mismanagement or unintended consequences. Overall, the Washington Crummy Trust Agreement for the Benefit of a Child with Parents as Trustees provides a flexible and customizable method for parents to set aside assets for their child's future financial needs, while still maintaining some degree of control over the trust's management and distributions.