“Crummey powers” are frequently used in trust instruments to allow the gift of a future interest to be treated as a gift of a present interest. This is important for gift tax purposes because only the gift of a present interest – i.e., money or property that can be claimed and used immediately – qualifies for the annual gift tax exclusion of $14,000. If a gift is not of a present interest, it cannot be excluded and is taxable.
Thursday, July 6, 2017
12:00 PM - 1:00 PM CT
Nebraska Activity #141356, 1.0 hours CLE (Distance Learning)
“Crummey powers” are frequently used in trust instruments to allow the gift of a future interest to be treated as a gift of a present interest. This is important for gift tax purposes because only the gift of a present interest – i.e., money or property that can be claimed and used immediately – qualifies for the annual gift tax exclusion of $14,000. If a gift is not of a present interest, it cannot be excluded and is taxable. The IRS frequently attacks Crummey powers, viewing them as a tax-reduction contrivance that have little basis in reality. Still, if Crummey powers are carefully drafted and utilized, courts uphold them and they are an effective tool for tax reduction for trusts of every size. This program will provide you with a practical guide to planning and drafting Crummey powers and avoiding common traps in their use.
- What are Crummey powers exactly – and how are they used in trusts?
- Understanding the tax and economic benefits of Crummey withdrawal powers
- Notice to beneficiary of powers – actual notice or mere knowledge by beneficiary?
- Crucial difference between explicit waiver of powers v. allowing powers to lapse
- Consequence of a failed Crummey power lapse
- Structuring a “hanging Crummey” and their “5 and 5” benefits
- Practical mistakes and traps for settlors, trustees and beneficiaries
Michael T. Clear is a partner in the Greenwich, Connecticut office of Wiggin and Dana, LLP, where his practice focuses on estate planning, estate and trust administration, probate litigation and business succession planning. His estate planning practice includes assisting individuals and families with tax-efficient and practical estate and gift planning, including the preparation of wills, revocable living trusts, insurance trusts, and qualified personal residence trusts. He was recently selected by the Connecticut Law Tribune as a New Leader in the Law. He is a co-chair of the Probate and Estates Section of the Fairfield County Bar Association and is a member of the Board of Directors of the Connecticut Chapter of the Exit Planning Exchange. Mr. Clear received his B.A. from the University of Richmond, his M.Ed from the University of Maryland, and his J.D., magna cum laude, from Quinnipiac University School of Law.
To Register:Cost $89.00
- Click on above link
- Click “Login to add to cart” button at the bottom of the program page
- This will take you to the log in page, FIRST time users will need to create a user name and password that is separate and distinct from any information you may have used for the Nebraska State Bar website
- Please be sure to use the attorney name and contact information of the person who is to receive the CLE credit
- Once completed click “Update & Proceed to Payment”
- The final step is to click “Submit Payment”
- At this point you will receive an email confirmation of the purchase
- The day before the Program you will receive the dial in information and program materials
- We will submit the program participation information to the Nebraska State Bar Association within 48 hours of the program completion
If you need additional information on your CLE credits please contact:
Sara Weber, Nebraska State Bar Association
(402) 475-7091 ext # 131; firstname.lastname@example.org