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: very poor or inferior : lousy.
Definition: The rule refers to a beneficiarys right or power to withdraw the greater of $5,000 or 5% of the trusts assets each year. Purpose: This rule is a provision of U.S. tax law that defines what is considered a present interest for gift tax purposes.
A Crummey trust offers several benefits for asset transfer while reducing taxes. It enables annual gift tax exclusion, permitting tax-efficient wealth transfer over time. Grantors can maintain control over the gifted assets, specify usage, and remove assets from their taxable estate for tax savings.
Crummey power allows a person to receive a gift that is not eligible for a gift-tax exclusion and then effectively transform the status of that gift into one that is eligible for a gift-tax exclusion. For Crummey power to work, individuals must stipulate that the gift is part of the trust when it is drafted.
A Crummey power is a provision contained in certain irrevocable trusts that permits specified trust beneficiaries to withdraw gifts you make to the trust for a limited period of time. The provision allows gifts to the trust to qualify for the federal annual gift tax exclusion.

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Crummey power allows a person to receive a gift that is not eligible for a gift-tax exclusion and then effectively transform the status of that gift into one that is eligible for a gift-tax exclusion.
Trusts that contain Crummey powers (hereinafter referred to as withdrawal power or Crummey power) have been popular since the Crummey case because of the following advantages: (i) a donor/grantor may gift without utilizing his/her lifetime gift tax exemption, (ii) the trust may have multiple beneficiaries, (iii)
Crummey powers give the beneficiary a limited time (often 30, 45 or 60 days) to withdraw contributions to a trust at will, converting the future interest gift to a present interest gift. This withdrawal right is generally limited to an amount equal to the current annual gift tax exclusion.

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