This trust vehicle will grant a beneficiary of the trust the ability to withdraw a portion or all the assets of that trust for a limited period of time after the contribution. The purpose of a Crummy trust is to allow the contributions of the trust to qualify for the exclusion from paying gift tax. Currently, the rates of gift and estate tax are quite high. Many existing taxpayers will no longer need the contributions paid to trust to qualify for the yearly exclusion.
« Back to Glossary Index