For transfers to minors that qualify for the annual gift tax exclusion, you may opt to transfer the gift to a UTMA account, a Section 529 Plan, or a 2503© Minor’s Trust. Learn more about a transfer under UTMA, Section 529 and a 2503© Minor’s Trust.
In addition, you may use a Crummey Trust for transferring a gift to a minor that still qualifies for the annual gift tax exclusion. A Crummey Minor’s Trust, or Crummey Trust, derives its name from a case that established the Trust’s effectiveness for securing the annual gift exclusion, Crummey v. Commission.
A Crummey Trust, unlike a 2503© Minor’s Trust, avoids the mandatory termination of the trust at age 21. In order for each contribution to the Crummey Trust to qualify for the annual gift exclusion; however, the beneficiary must be given a right of withdrawal for each contribution. This is usually a 30 or 60-day withdrawal right. Notice of the withdrawal right must be provided to the beneficiary.
Contact Crummey Trust Lawyers in Montgomery County, PA
As with most PA estate planning matters, there are other gift and estate tax permutations with regard to the Crummey Trust. Therefore, it is important for you to utilize the assistance of an experienced Pennsylvania Crummey Trust lawyer.
A skilled Crummey Trust lawyer at The Martin Law Firm, located in Montgomery County, PA, can provide you with expert guidance if you are considering the use of a Crummey Trust as part of a comprehensive Pennsylvania estate plan. Contact The Martin Law Firm at 215-646-3980 today to schedule an estate planning appointment.