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What is the annual gift tax exclusion amount on gifts to Crummey trusts?
The current annual exclusion amount on gifts made to a Crummey Trust is $13,000. That is the allowed exclusion amount for 2009.This amount generally increases each year, but for 2009, $13,000 is the allowed limit on gifts.If this was helpful, please press the Accept button. Positive feedback is also appreciated.
Since the annual exclusion for the Crummey letter follows the IRS regs. as "future gifts", the limit would be $13000 as Merlo stated. Please see below:Morrow Law - Crummey LettersP OThe copy of the letter referenced above mentioned a $10,000 exclusion, but that particular letter was drafted when the yearly exclusion amount was $10,000 (1998-2001)I hope this offers clarification
Perhaps I am asking the wrong question. It's my understanding there is an additional constraint - a "5 by 5" power? Can you advise how that interacts with the gifting regulations? If this is, indeed, a separate question, from my original I am happy to pay for an additional question. And I thank you in advance for your assistance.
The "5x5" rule deals with the lapse of a Crummey withdrawal right that involves an amount >$5000 or 5% of the trust assets when the release or general power of appointment is treated as a transfer by the individual who released the power.Please see page 10
Your original question re: The Crummey gift tax exclusion is still the same as any individual's, ($13000/person)Please see page 8
I hope this helps clarify things.
I am very grateful for your response. The information you provided has been most helpful.