What are sprinkling provisions?

Sprinkling provision is a provision within a life insurance agreement that allows the policy's trustee to spread the death benefit around to beneficiaries at his or her discretion.

US Legal Forms
Localized Forms
Florida
Miami-Dade
Sprinkling Trust for Children During Grantor's Life...

Miami-Dade Florida Sprinkling Trust for Children During Grantor's Life, and for Surviving Spouse and Children after Grantor's Death - Crummey Trust Agreement

Category:

Trusts - Bypass

State:

Multi-State

County:

Miami-Dade

Control #:

US-00634BG

Format:

Instant download

Description

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.

Form Rating

4.73

Satisfied(465)

Form popularity

FAQ

Unlike many trusts where the trustee must follow strict instructions from the creator of the trust, sprinkling trusts allow almost unlimited flexibility for the trustee to give funds to the beneficiaries as needed, sometimes only to one beneficiary.

Sprinkling trusts may be especially useful when beneficiaries have changing or varied needs because the trustee can adjust payments based on the beneficiaries' ages, health, education, and financial needs. One common example of a sprinkling trust is a family pot trust.

A sprinkling trust gives the trustee the right to provide income to a single beneficiary, distribute some or all of the income to or among a group of beneficiaries and to do the same with trust principal. In other words, the trustee need not treat all beneficiaries equally.

The idea is to allow money to go to the people who need it the most. Consequently, the trustee is given the discretion to ?sprinkle? income and/or principal among several beneficiaries or to let it accumulate in the trust.

Sprinkling provision is a provision within a life insurance agreement that allows the policy's trustee to spread the death benefit around to beneficiaries at his or her discretion.

5 potential benefits of setting up a trust Trusts avoid the probate process.Trusts may provide tax benefits.Trusts offer specific parameters for the use of your assets.Revocable trusts can help during illness or disability ? not just death.Trusts allow for flexibility.

Miami-Dade Florida Sprinkling Trust for Children During Grantor's Life, and for Surviving Spouse and Children after Grantor's Death - Crummey Trust Agreement

Description

Related forms

Show more info

Form Rating

Form popularity

FAQ

What is the advantage of a sprinkling trust?

When would you use a sprinkling trust?

What is a sprinkling provision in a trust?

Why is a discretionary trust also called a sprinkling or spray trust?

What is the advantage of creating a sprinkling trust?

What are sprinkling provisions?

What are the advantages of setting up a trust?

Trusted and secure by over 3 million people of the world’s leading companies