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Can a Crummey trust have multiple beneficiaries?

Advantages of a Crummey Trust A Crummey trust can have multiple beneficiaries. Unlike some college savings plans, there are no penalties if the funds are not used for higher education.

What are sprinkling provisions?

Sprinkling provision is a provision within a life insurance agreement that allows the policys trustee to spread the death benefit around to beneficiaries at his or her discretion.

How is a trust dispersed?

Distribute trust assets outright The trustee can write the beneficiary a check, give them cash, and transfer real estate by drawing up a new deed or selling the house and giving them the proceeds.

How does a Crummey trust work?

Understanding Crummey Trusts The use of a Crummey trust allows an eligible recipient to make withdrawals of the gift within a set span of time, such as within 30 or 60 days after the transfer. Beyond that point, the gift funds held in the trust fall under the stipulated withdrawal rules as set by the trusts grantor.

What is a trust disbursement?

When it comes time to remove assets from a trust and deliver them to the beneficiary, this is commonly defined as a trust disbursement. Depending upon the specific type of trust used and the nature of the disbursement, the beneficiary may be exposed to some form of trust tax.

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