the power of a trust beneficiary to demand a distribution from the trust of amounts contributed to the trust, limited as to amount and duration of the exercise period
The power held by the beneficiary of a trust to withdraw a certain amount annually from the trust. This amount is limited to $5,000 or 5 percent of the trust corpus each year.
named after a tax court case involving a taxpayer with the last name of Crummey, this refers to a trust beneficiary's right to withdraw a portion of the assets transferred, by gift, to the trust. Generally, the beneficiary must be made aware of the gift by a Crummey Notice and be provided with an actual right to withdraw assets.
A power held by the beneficiary of a trust to withdraw a certain amount annually from the trust, usually limited to the greater of $5,000 or 5% of the trust corpus each year.
A device used in irrevocable insurance trusts to secure the gift tax annual exclusion for the initial transfer of an existing life insurance policy into the trust and the subsequent transfers for the payment of premiums. Trust beneficiaries are given the right to withdraw amounts from the trust during limited periods of time, creating a present interest in the beneficiaries.
The right of a donor to make gifts to a trust with a withdrawal right. The donor or trustee must notify the beneficiary of his Crummey rights to withdraw some or all of the value of the gift in the year made. The right to withdraw - which is typically not exercised - is required for the donation to the trust to be a gift of a present interest.
A right exercised by the beneficiary of a trust to withdraw money from the trust for a limited amount of time each year.