Definitions for "Crummey power"
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 withÂdraw 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 over principal, not income