What does crummey trust mean?
Definitions for crummey trust
crum·mey trust
This dictionary definitions page includes all the possible meanings, example usage and translations of the word crummey trust.
Did you actually mean coriander seed?
Wikipedia
Crummey trust
In the United States a Crummey trust (named for the first person to use such a structure. see: Crummey et al. v. Commissioner of Internal Revenue, 397 F.2d 82, (9th Cir.1968) is a trust for the benefit of individuals into which gifts are made in a manner qualifying them for exclusion from the unified gift and estate tax. Crummey trust is also referred to as a Crummey provision or a Crummey power. A Crummey provision can be contained within another type of trust. Normally life insurance trusts will have a Crummey provision. Normally, gifts to minors are subject to parental / guardian control until the age of majority. In order to delay the transfer of control beyond the age of 18, the funds must be placed in trust. However, the annual gift exclusion ($15,000 per individual and $30,000 per married couple as of 2018) from the gift tax is only available for gifts of so-called present interests. Normally, a gift into a trust that comes under control of the beneficiary at a future date does not constitute a present interest. A Crummey trust achieves the desired treatment by offering the recipient a window of time (often 30 days) to take immediate control of the gift. (The control offered only applies to the current gift - by assumption, an amount no greater than the annual exclusion amount - not the entire trust.) If the recipient fails to do so during that window, the gift becomes part of the trust, and is subject to the trust's distribution conditions. However, since the recipient had the opportunity to receive the funds outside of the trust, the gift is deemed to be a present interest, subjecting it to the annual exclusion. The expectation of future annual gifts under the same mechanism (or the expectation of the withholding of such future gifts if the recipient exerts control over the gift) may motivate the recipient to relinquish control of the funds into the trust. A Crummey provision is typically a provision within another trust and ordinarily works as follows. The grantor makes a gift to an irrevocable living trust. The trust beneficiaries are notified by the trustee that they have the power for a specified time period to withdraw some or all of the gift to the trust. The simultaneous acts of the grantor transferring property to the trust and the trust beneficiaries being permitted to withdraw the gift form the trust is deemed to be the same as giving the gift to the beneficiaries outright. The gift to the trust with the Crummey provision now qualifies for the annual gift exclusion. The Crummey Trust is named after D. Clifford Crummey, who, in the 1960s, first came up with the idea. The U.S. Tax Court found this action legal in 1968, and the nickname "Crummey Power" stuck.
Numerology
Chaldean Numerology
The numerical value of crummey trust in Chaldean Numerology is: 8
Pythagorean Numerology
The numerical value of crummey trust in Pythagorean Numerology is: 7
Translation
Find a translation for the crummey trust definition in other languages:
Select another language:
- - Select -
- 简体中文 (Chinese - Simplified)
- 繁體中文 (Chinese - Traditional)
- Español (Spanish)
- Esperanto (Esperanto)
- 日本語 (Japanese)
- Português (Portuguese)
- Deutsch (German)
- العربية (Arabic)
- Français (French)
- Русский (Russian)
- ಕನ್ನಡ (Kannada)
- 한국어 (Korean)
- עברית (Hebrew)
- Gaeilge (Irish)
- Українська (Ukrainian)
- اردو (Urdu)
- Magyar (Hungarian)
- मानक हिन्दी (Hindi)
- Indonesia (Indonesian)
- Italiano (Italian)
- தமிழ் (Tamil)
- Türkçe (Turkish)
- తెలుగు (Telugu)
- ภาษาไทย (Thai)
- Tiếng Việt (Vietnamese)
- Čeština (Czech)
- Polski (Polish)
- Bahasa Indonesia (Indonesian)
- Românește (Romanian)
- Nederlands (Dutch)
- Ελληνικά (Greek)
- Latinum (Latin)
- Svenska (Swedish)
- Dansk (Danish)
- Suomi (Finnish)
- فارسی (Persian)
- ייִדיש (Yiddish)
- հայերեն (Armenian)
- Norsk (Norwegian)
- English (English)
Word of the Day
Would you like us to send you a FREE new word definition delivered to your inbox daily?
Citation
Use the citation below to add this definition to your bibliography:
Style:MLAChicagoAPA
"crummey trust." Definitions.net. STANDS4 LLC, 2024. Web. 13 May 2024. <https://www.definitions.net/definition/crummey+trust>.
Discuss these crummey trust definitions with the community:
Report Comment
We're doing our best to make sure our content is useful, accurate and safe.
If by any chance you spot an inappropriate comment while navigating through our website please use this form to let us know, and we'll take care of it shortly.
Attachment
You need to be logged in to favorite.
Log In