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:

Hemat/o

A prefix relating to blood.

Septicemia

A serious bloodstream infection that can lead to sepsis, a potentially life-threatening condition.

Hemostasis

The process by which bleeding is stopped via blood clotting after a blood vessel injury.

Hypoglycemia

A condition characterized by an abnormally low level of glucose (sugar) in the blood, often causing symptoms such as shakiness, sweating, and confusion.