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.

---

Definitions:

Parallelism

The extent to which the friction surface of a brake disc varies in thickness. Slight variations in rotor thickness result in brake pedal pulsation as the pads must move in and out to compensate. Also called taper or thickness variation.

Runout

The degree of wobble or deviation from true circular rotation often related to rotors or wheels.

Rotor Parallelism

The degree to which both sides of a brake rotor are equidistant to each other, essential for smooth braking.

Micrometer

A precision measuring instrument used to measure very small distances, thicknesses, or diameters with high accuracy.