Crummey Notice (noun): A Crummey notice is given to a beneficiary of an irrevocable trust by the trustee, letting them know they have the right to withdraw. This right to withdraw a portion of the trust property is seen as a gift in the eyes of the IRS. By taking advantage of the annual gift tax exclusion amount, gift tax liabilities can be avoided. However, this strategy is only effective when the trustee provides the beneficiary with the Crummey notice. To read more about Crummey notice click here.
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