Franklin Ohio Crummey Trust Agreement for Benefit of Child with Parents as Trustors

• Category: Trusts - Bypass
• State: Multi-State
• County: Franklin
• 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 Franklin Ohio Crummy Trust Agreement for Benefit of Child with Parents as Trustees is a legal document that establishes a trust for the benefit of a child, with the child's parents as the trustees. This type of trust is commonly used to secure financial assets for a child's future, ensuring their well-being and providing them with financial stability. The Franklin Ohio Crummy Trust Agreement allows the parents to set aside a specific amount of assets or property, which will be managed by a designated trustee until the child reaches a certain age or achieves certain milestones. The trust can be created during the parents' lifetime or through a testamentary provision in their will. This specialized type of trust is referred to as a Crummy Trust, named after the Crummy vs. Commissioner legal case, which significantly influenced the use of this type of trust. The Crummy Trust is specifically designed to take advantage of the annual gift tax exclusion, allowing money or property to be transferred into the trust up to a certain threshold without incurring gift taxes. By structuring the trust properly, parents can maximize the amount of assets they can transfer into the trust without incurring gift tax liabilities. There are various types of Franklin Ohio Crummy Trust Agreements that can be tailored to specific circumstances or preferences of the parents. Some common variations include: 1. Educational Crummy Trust: This type of trust focuses on funding the child's education expenses such as tuition, books, and other related costs. 2. Health Care Crummy Trust: This trust is designed to provide for the child's healthcare needs, including medical insurance, doctor visits, and other related expenses. 3. Special Needs Crummy Trust: This trust is specifically created for children with special needs or disabilities, allowing them to maintain eligibility for government benefits while still receiving additional financial support. 4. Lifetime Crummy Trust: In some cases, parents may choose to establish a trust that supports their child beyond reaching a certain age or milestone. With a lifetime Crummy Trust, the child can receive distributions from the trust throughout their lifetime. It is essential for parents to consult with an experienced attorney to determine the most appropriate type of trust and ensure compliance with Ohio state laws and regulations. Creating a Franklin Ohio Crummy Trust Agreement provides peace of mind for parents, knowing that their child's financial future is secure and well-managed.

The Franklin Ohio Crummy Trust Agreement for Benefit of Child with Parents as Trustees is a legal document that establishes a trust for the benefit of a child, with the child's parents as the trustees. This type of trust is commonly used to secure financial assets for a child's future, ensuring their well-being and providing them with financial stability. The Franklin Ohio Crummy Trust Agreement allows the parents to set aside a specific amount of assets or property, which will be managed by a designated trustee until the child reaches a certain age or achieves certain milestones. The trust can be created during the parents' lifetime or through a testamentary provision in their will. This specialized type of trust is referred to as a Crummy Trust, named after the Crummy vs. Commissioner legal case, which significantly influenced the use of this type of trust. The Crummy Trust is specifically designed to take advantage of the annual gift tax exclusion, allowing money or property to be transferred into the trust up to a certain threshold without incurring gift taxes. By structuring the trust properly, parents can maximize the amount of assets they can transfer into the trust without incurring gift tax liabilities. There are various types of Franklin Ohio Crummy Trust Agreements that can be tailored to specific circumstances or preferences of the parents. Some common variations include: 1. Educational Crummy Trust: This type of trust focuses on funding the child's education expenses such as tuition, books, and other related costs. 2. Health Care Crummy Trust: This trust is designed to provide for the child's healthcare needs, including medical insurance, doctor visits, and other related expenses. 3. Special Needs Crummy Trust: This trust is specifically created for children with special needs or disabilities, allowing them to maintain eligibility for government benefits while still receiving additional financial support. 4. Lifetime Crummy Trust: In some cases, parents may choose to establish a trust that supports their child beyond reaching a certain age or milestone. With a lifetime Crummy Trust, the child can receive distributions from the trust throughout their lifetime. It is essential for parents to consult with an experienced attorney to determine the most appropriate type of trust and ensure compliance with Ohio state laws and regulations. Creating a Franklin Ohio Crummy Trust Agreement provides peace of mind for parents, knowing that their child's financial future is secure and well-managed.