Paul placed a gift in an irrevocable trust so that it is converted to a present interest at time of withdrawal. What power is Paul using?

Question

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When a gift is placed in an irrevocable trust so that it is converted to a present interest at time of withdrawal is employing Crummey provisions. A Crummey power makes a transfer to a trust a gift of a present interest. The beneficiary has a noncumulative right to withdraw a specified amount of property transferred to tat trust within a specified period. If the right is not exercised, the annual transfer for the year remains in the trust for management by the trustee. If the right is exercised, the trustee must deliver the fund to the beneficiary.

Paul Placed a Gift in an Irrevocable Trust So That