Understanding Crummey Trusts After setting up a Crummey Trust, the grantor deposits assets into it. At that point, beneficiaries are informed of the contribution by a Crummey letter (or notice).

A grantor retained annuity trust is a financial instrument used in estate planning to minimize taxes on large financial gifts to family members.

A few examples of the powers that a trust maker can keep over the trust, so that the trust qualifies for grantor status and trust income is taxed to the trust maker, include generally: powers to ...

Consider, for example, an asset with a basis of $10 and a fair market value of $100. If the asset is gifted to an IDGT during the lifetime of the grantor, it retains a basis of $10.

Although sometimes pitched under different names, the trust is usually referred to as a “non-grantor irrevocable ... by misinterpreting some old Private Letter Rulings and sometimes producing ...

3. Finally, the senators requested that the IRS confirm that when a grantor pays income taxes that are attributable to trust income, those payments are subject to the gift tax. The letter ...