Why Are Crummey Trusts Popular for Minors

question 36

Multiple Choice

Why are Crummey trusts popular for minors?

• A)They are considered gifts of a future interest and allow the donor to take an exclusion.
• B)They are considered gifts of a present interest, permitting an annual gift tax exclusion.
• C)Crummey trusts require annual distributions to minors.
• D)Donors are only subject to the gift tax when funds are distributed from Crummey trusts.

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Definitions:

Unionized

Describes a workforce or an organization where employees are members of a union, which negotiates terms of employment on their behalf.

Unionized Employer

An employer whose workforce is represented by a union or labor organization, which negotiates wages, working conditions, and other employment terms.

Investment Expenditures

Spending on capital goods that will be used for future production, including assets like equipment, buildings, and machinery.

Profits Transfer

The reallocation of profits from one entity to another, often seen in corporate structures or international transactions to optimize tax liabilities.