Crummey power. The right of a beneficiary of a Crummey trust to withdraw gifts made to the trust up to a maximum amount (often the lesser of the annual exclusion or the value of the gift made to the trust) for a certain period after the gift is made. ? The precise characteristics of a Crummey power are established by the settlor of a Crummey trust. Typically, the power is exercisable for 30 days after the gift is made and permits withdrawals up to $5,000 or 5% of the value of the trust. A beneficiary may allow the power to lapse without making any demand for distribution. See Crummey trust under TRUST; annual exclusion under EXCLUSION.
TermBase Contributor
Carl, Chinese legal translator, specializes in translating legal documents pertaining to complex business disputes.