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:

Vendor Managed Inventory

A business model where the supplier assumes the responsibility of managing inventory levels at the retailer or buyer’s location, aiming to improve supply chain efficiency.

Coordinated Stocking

A strategy where inventory levels across different locations or stages in a supply chain are managed in sync to optimize overall performance and minimize costs.

Sell-in to Sell-through

The process from selling products into retail channels (sell-in) to the actual sale of those products to the end consumers (sell-through).

CRP System

Continuous Replenishment Program, a supply chain management strategy aimed at improving inventory management and enhancing the flow of goods from suppliers to consumers.