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Simple English definitions for legal terms

Crummey power

Read a random definition: Motion For Summary Judgment

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

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Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
BulbasaurNoLikeCardio
7:51
@texaslawhopefully: best prices and only fast food that doesn't make me sick
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