Why Are Crummey Trusts Popular for Minors

question 60

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) Donors are only subject to the gift tax when funds are distributed from Crummey trusts.
• D) Crummey trusts require annual distributions to minors.

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Definitions:

Horizontal Structure

An organizational layout that emphasizes teamwork and collaboration among departments or teams, with a minimal level of hierarchy.

Divisional Structure

An organizational arrangement where operations are grouped based on similar products or services, markets, or geographic locations.

Functional Structure

Functional Structure refers to an organizational form where the company is divided into departments each handling a specific function, like marketing or finance, concentrating expertise but potentially limiting inter-department communication.

Vertical Structure

An organizational structure where authority flows from the top down, with a clear line of command.