Marilyn and Earl establish a trust benefiting their grandchild, Courtney, age 4. Courtney is to receive the accumulated income and corpus when she reaches age 30. In the year of the transfer, Courtney has a two-week period in which to request distributions. This trust is a

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This trust is a Crummey trust because it allows for Courtney to have a two-week period in which to request distributions of the accumulated income. The purpose of the Crummey power is to make the transfer of assets to the trust qualify for the annual gift tax exclusion. The Crummey power allows the beneficiary to withdraw the gift during a certain period of time, typically 30 to 60 days, after which the gift becomes irrevocable.

Marilyn and Earl Establish a Trust Benefiting Their Grandchild, Courtney