Dickson, TN asked in Estate Planning for Tennessee

Q: Can the Beneficiary/powerholdes of a Crummey Trust change from year to year.

Years ago I set up a Crummey Trust with a one time gift/donation -- not an insurance trust. There were 10 beneficiaries/powerholders. Now I wish to add about $100,000 more to the trust. I know the trust is irrevocable. The beneficiaries will not change. But since the annual gift tax has increased and the total gift/donation will only be about $100,000 I will only need about 7 powerholders. Can the trustee simply send crummey letters to the 7 power holders and not send any withdrawal notice to the other 3 beneficiaries?

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1 Lawyer Answer
Anthony M. Avery
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Answered
  • Estate Planning Lawyer
  • Knoxville, TN
  • Licensed in Tennessee

A: You need to hire a competent attorney to examine the Trust in force, and examine what you wish to do in the future. It is impossible to give you advice without examining the Trust Instrument, your Tax returns, the Trust's Tax Returns if any, and what your objectives are in relation to the Beneficiaries. Again hire an attorney and forget about general inquiries on the computer. Your attorney does not need to be local.

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