Avoiding Crummey Power Mistakes in Drafting Trust Documents
Protecting Against IRS Challenges to Gifts to Irrevocable Trusts
Recording of a 90-minute CLE/CPE webinar with Q&A
This CLE/CPE course will provide counsel with a detailed review of best practices in drafting and maintaining Crummey provisions in trust documents. The panel will discuss the key language that must be included in all trusts that utilize Crummey “present interest” withdrawal provisions to qualify for the annual gift exclusion and will detail additional steps for tax counsel and trustees to ensure that Crummey provisions withstand IRS scrutiny.
- Drafting requirements in trust documents
- Notice requirements to beneficiaries
- Additional steps to protect against IRS challenge
- “Hanging Crummey powers”
The panel will review these and other key issues:
- What language will suffice in the trust document to demonstrate that the withdrawal period and mechanics satisfy the requirement of the gift being a “present interest?”
- What is the notice to beneficiaries requirement to satisfy IRS requirements?
- What additional steps should tax counsel and advisers take to make sure trust documents and operations conform to IRS accepted practices governing Crummey powers?
Christiana M. Lazo
Ropes & Gray
Ms. Lazo’s practice consists of representing ultra-high net worth individuals, their family offices, and closely... | Read More
Ms. Lazo’s practice consists of representing ultra-high net worth individuals, their family offices, and closely held businesses in developing and implementing sophisticated domestic and international tax and estate plans. She has significant experience counseling global clients on inbound and outbound planning, particularly advising families with members in multiple jurisdictions on wealth transfers and on tax-efficient investment and business ownership structures.Close
Francisco Garcia, Jr., Esq.
Henderson Caverly Pum & Trytten