Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

Crummey power

Read a random definition: knock and announce

A quick definition of Crummey power:

A Crummey power is a right given to someone who benefits from a trust to take out a certain amount of money from the trust as a gift. This power usually lasts for 30 days after the gift is given and can be up to $5,000 or 5% of the trust's value. The person can choose not to use this power if they want. This is done to avoid taxes and make it easier to give small gifts.

A more thorough explanation:

Crummey power refers to the right of a beneficiary of a Crummey trust to withdraw gifts made to the trust up to a maximum amount for a certain period after the gift is made. The maximum amount is often the lesser of the annual exclusion or the value of the gift made to the trust. The settlor of a Crummey trust establishes the precise characteristics of a Crummey power. Typically, the power is exercisable for 30 days after the gift is made and permits withdrawals up to $5,000 or 5% of the value of the trust. A beneficiary may allow the power to lapse without making any demand for distribution.

For example, if a parent sets up a Crummey trust for their child and gifts $20,000 to the trust, the child may have the right to withdraw up to $10,000 of that gift within 30 days. If the child does not exercise the Crummey power within that time frame, the right to withdraw lapses.

The purpose of the Crummey power is to allow the donor to take advantage of the annual exclusion for gift tax purposes while still retaining some control over the gifted assets. By allowing the beneficiary to withdraw the gifted amount, the donor can ensure that the gift is not considered a testamentary transfer and is therefore not subject to estate tax.

cruelty to children | cry de pais

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
LSD+ is ad-free, with DMs, discounts, case briefs & more.