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.
The New Mexico 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 in which the Granter sets up a trust to provide financial support for their children during their lifetime, and for their surviving spouse and children after their death. This type of trust incorporates the Crummy provision, which qualifies gifts made to the trust for the annual gift tax exclusion. The New Mexico Sprinkling Trust for Children During Granter's Life allows the Granter to distribute income and assets to their children as needed during their lifetime. This provides the children with financial support for education, healthcare, or any other necessary expenses. The Granter maintains control of the trust and can decide how much and when to distribute funds to the beneficiaries. In addition to benefiting the children during the Granter's life, the trust also provides for the surviving spouse and children after the Granter's death. The assets in the trust continue to be managed by a designated trustee, who is responsible for distributing income and principal to the surviving spouse and children according to the terms established by the Granter. The Crummy provision within the trust ensures that any annual gifts made by the Granter to the trust will qualify for the annual gift tax exclusion. This means that the gift is not subject to gift taxes up to a certain amount per year, per beneficiary. By utilizing this provision, the Granter can effectively transfer assets to their children and surviving spouse without incurring gift tax liability. Overall, the New Mexico Sprinkling Trust for Children During Granter's Life, and for Surviving Spouse and Children after Granter's Death Crummyey Trust Agreement provides a flexible and tax-efficient way for the Granter to support their children during their lifetime, and ensure continued financial security for their surviving spouse and children after their passing. Keywords: New Mexico, Sprinkling Trust, Children During Granter's Life, Surviving Spouse, Children after Granter's Death, Crummy Trust Agreement, legal arrangement, financial support, education, healthcare, necessary expenses, control, designated trustee, income, principal, terms, assets, managing, gift tax exclusion, liability, tax-efficient, financial security.
