A "Crummey demand power" in a trust document allows the donor to demand a distribution from the trust in years in which earnings exist within the trust.

Question

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A "Crummey demand power" actually gives the beneficiaries, not the donor, the right to withdraw contributions made to the trust for a limited period of time, typically 30 or 60 days after the contribution is made. This feature is used to qualify gifts for the annual gift tax exclusion.

A "Crummey Demand Power" in a Trust Document Allows the Donor