• 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.