Travis Texas Crummey Trust Agreement for Benefit of Child with Parents as Trustors

• Category: Trusts - Bypass
• State: Multi-State
• County: Travis
• 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 Travis Texas Crummy Trust Agreement for the Benefit of a Child with Parents as Trustees is a legally binding document that establishes a trust for the benefit of a child, where the child's parents serve as the trustees. This agreement outlines the specific terms and conditions under which the trust operates and ensures that the child's financial future and well-being are adequately protected. The Crummy Trust Agreement is named after the court case Crummy v. Commissioner, which established the legal framework for applying the annual federal gift tax exclusion to gifts made to a trust. By utilizing the annual gift tax exclusion, the child's parents can fund the trust without incurring any additional taxes. There are several types or variations of the Travis Texas Crummy Trust Agreement for the Benefit of a Child with Parents as Trustees, depending on individual circumstances and preferences. Here are a few notable examples: 1. Revocable Crummy Trust: This type of trust allows the parents to maintain control over the assets placed in the trust. They have the ability to modify or revoke the trust at any time. 2. Irrevocable Crummy Trust: In contrast to the revocable trust, an irrevocable Crummy Trust cannot be modified or revoked without the consent of the beneficiaries. Once assets are transferred to this trust, they are considered separate from the parents' estate. 3. Life Insurance Crummy Trust: This type of trust is specifically designed to hold life insurance policies, ensuring that the child receives insurance proceeds upon the death of the parents. By using a Crummy provision, the trust can benefit from the annual gift tax exclusion. 4. Generation-Skipping Crummy Trust: This trust allows the assets to be transferred to the child, bypassing the child's parents' generation for tax purposes. It can provide long-term wealth preservation and transfer benefits for future generations. The Travis Texas Crummy Trust Agreement for the Benefit of a Child with Parents as Trustees provides a comprehensive legal framework for safeguarding a child's financial future. It allows parents to make gifts to the trust by taking advantage of the annual gift tax exclusion while simultaneously providing asset protection and control. The specific type of trust agreement chosen should align with the parents' goals, desires, and unique circumstances.

The Travis Texas Crummy Trust Agreement for the Benefit of a Child with Parents as Trustees is a legally binding document that establishes a trust for the benefit of a child, where the child's parents serve as the trustees. This agreement outlines the specific terms and conditions under which the trust operates and ensures that the child's financial future and well-being are adequately protected. The Crummy Trust Agreement is named after the court case Crummy v. Commissioner, which established the legal framework for applying the annual federal gift tax exclusion to gifts made to a trust. By utilizing the annual gift tax exclusion, the child's parents can fund the trust without incurring any additional taxes. There are several types or variations of the Travis Texas Crummy Trust Agreement for the Benefit of a Child with Parents as Trustees, depending on individual circumstances and preferences. Here are a few notable examples: 1. Revocable Crummy Trust: This type of trust allows the parents to maintain control over the assets placed in the trust. They have the ability to modify or revoke the trust at any time. 2. Irrevocable Crummy Trust: In contrast to the revocable trust, an irrevocable Crummy Trust cannot be modified or revoked without the consent of the beneficiaries. Once assets are transferred to this trust, they are considered separate from the parents' estate. 3. Life Insurance Crummy Trust: This type of trust is specifically designed to hold life insurance policies, ensuring that the child receives insurance proceeds upon the death of the parents. By using a Crummy provision, the trust can benefit from the annual gift tax exclusion. 4. Generation-Skipping Crummy Trust: This trust allows the assets to be transferred to the child, bypassing the child's parents' generation for tax purposes. It can provide long-term wealth preservation and transfer benefits for future generations. The Travis Texas Crummy Trust Agreement for the Benefit of a Child with Parents as Trustees provides a comprehensive legal framework for safeguarding a child's financial future. It allows parents to make gifts to the trust by taking advantage of the annual gift tax exclusion while simultaneously providing asset protection and control. The specific type of trust agreement chosen should align with the parents' goals, desires, and unique circumstances.