Crummey Powers in Estate Planning
1 hour 30 minutes
Understand how Crummey powers can be used to achieve your client's estate planning goals.
The decision in Crummey v. Commissioner directly addressed a fundamental flaw in tax policy – the inability for parents to make annual gift tax exclusion gifts to their children in trust. After Crummey, parent-donors had a procedure by which to make such exclusion gifts. Indirectly, the Crummey decision spawned the rise of Crummey powers in estate planning, affording taxpayers and their advisors the ability to reduce methodically their gross estates and avoid estate and gift tax consequences. This topic will assist estate planners in understanding the development and practical application of Crummey powers, giving them a powerful tool to assist clients with achieving their estate planning goals.
• You will be able to define Crummey powers.
• You will be able to identify estate and gift tax.
• You will be able to recognize typical trust language.
• You will be able to describe trustee responsibilities.