Which of the following is not a characteristic of a Crummey trust?
A) A Crummey trust is a grantor trust, with the result that all trust income will be taxed to the grantor.
B) A Crummey trust allows the grantor to delay distribution of trust assets beyond the 21st birthday of the trust beneficiary.
C) Transfers into a Crummey trust are eligible for the annual gift tax exclusion because of the withdrawal right given to trust beneficiaries.
D) Beneficiaries of a Crummey trust must be notified of their withdrawal right within a reasonable period prior to the lapse of the right.
Correct Answer:
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