Crummey trust

A trust in which the trustee has the power to distribute or accumulate income and to give the beneficiary the right to withdraw the amount of the annual exclusion (or a smaller sum) within a reasonable time after the transfer.

• This type of trust can have multiple beneficiaries and is often used when the beneficiaries are minors. Gifts to a Crummey trust qualify for the annual exclusion regardless of the age of the beneficiaries. The trust assets are not required to be distributed to the beneficiaries at age 21. The validity of this type of trust was established in Crummey v. Commissioner, 397 F.2d 82 (9th Cir. 1968).

— Also termed discretionary trust. See CRUMMEY POWER; annual exclusion under EXCLUSION. Cf. 2503(c) trust.

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译员何巍，毕业于欧洲一流的高级翻译学院，专注翻译各种与生命科学有关的法律文件。