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.
Harris Texas 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 that allows a granter to provide financial support and protection for their children during their lifetime, and for their surviving spouse and children after their death. This trust employs the Crummy power, which gives the beneficiaries the ability to withdraw contributions to the trust for a limited period, typically 30 days, making it eligible for the annual gift tax exclusion. The Harris Texas Sprinkling Trust offers various types of arrangements tailored to meet the specific needs of the granter and beneficiaries. These may include: 1. Sprinkling Trust: A trust structure where the granter can distribute funds to the children during their lifetime at their discretion. This allows the granter to provide financial assistance for education, healthcare, or any other specific needs as they arise. 2. Surviving Spouse Trust: After the granter's death, this trust provides ongoing financial support and protection for the surviving spouse. It ensures that the surviving spouse has access to necessary funds while preserving the principal for the ultimate benefit of the children. 3. Children's Trust: This trust focuses on the children's financial well-being after the granter's demise. It is designed to provide for their education, healthcare, maintenance, and general support until they reach a specified age or milestone, such as college graduation. The Crummy Trust Agreement, a crucial component of this arrangement, enables the beneficiaries to receive contributions as gifts for a limited time period, consequently qualifying for the annual gift tax exclusion. This provision allows the granter to gift assets to the trust, reducing potential estate taxes while ensuring the funds are used to benefit the intended beneficiaries. In summary, the Harris Texas Sprinkling Trust for Children During Granter's Life, and for Surviving Spouse and Children after Granter's Death Crummyey Trust Agreement is a versatile legal tool that prioritizes the financial well-being of the granter's children during their lifetime and provides support and security for their surviving spouse and children after the granter's passing. By utilizing the Crummy power, the trust agreement allows for strategic gifting to minimize taxes and maximize the benefits for the beneficiaries.Harris Texas 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 that allows a granter to provide financial support and protection for their children during their lifetime, and for their surviving spouse and children after their death. This trust employs the Crummy power, which gives the beneficiaries the ability to withdraw contributions to the trust for a limited period, typically 30 days, making it eligible for the annual gift tax exclusion. The Harris Texas Sprinkling Trust offers various types of arrangements tailored to meet the specific needs of the granter and beneficiaries. These may include: 1. Sprinkling Trust: A trust structure where the granter can distribute funds to the children during their lifetime at their discretion. This allows the granter to provide financial assistance for education, healthcare, or any other specific needs as they arise. 2. Surviving Spouse Trust: After the granter's death, this trust provides ongoing financial support and protection for the surviving spouse. It ensures that the surviving spouse has access to necessary funds while preserving the principal for the ultimate benefit of the children. 3. Children's Trust: This trust focuses on the children's financial well-being after the granter's demise. It is designed to provide for their education, healthcare, maintenance, and general support until they reach a specified age or milestone, such as college graduation. The Crummy Trust Agreement, a crucial component of this arrangement, enables the beneficiaries to receive contributions as gifts for a limited time period, consequently qualifying for the annual gift tax exclusion. This provision allows the granter to gift assets to the trust, reducing potential estate taxes while ensuring the funds are used to benefit the intended beneficiaries. In summary, the Harris Texas Sprinkling Trust for Children During Granter's Life, and for Surviving Spouse and Children after Granter's Death Crummyey Trust Agreement is a versatile legal tool that prioritizes the financial well-being of the granter's children during their lifetime and provides support and security for their surviving spouse and children after the granter's passing. By utilizing the Crummy power, the trust agreement allows for strategic gifting to minimize taxes and maximize the benefits for the beneficiaries.
