Crummey Withdrawal Notice

The Crummey Withdrawal Notice legal template is a document that pertains to the Crummey trust provision under United States law. A Crummey trust is a type of irrevocable trust commonly used for estate planning purposes, which allows the grantor to make annual gifts to beneficiaries while taking advantage of the gift tax exclusion.

The template includes a notice that the grantor (the person establishing the trust) sends to the beneficiaries to notify them of their right to withdraw the gifted funds within a specific timeframe, usually 30 days. This notice is crucial as it triggers the 'present interest' requirement, which ensures that the gifted amount qualifies for the annual gift tax exemption.

The Crummey Withdrawal Notice template typically outlines the relevant details such as the grantor's name, the name of the trust, the specific amount or property gifted, the date of the gift, and the beneficiaries' names. Additionally, it includes explicit instructions on how beneficiaries can exercise their withdrawal rights, including the timeframe for doing so.

By utilizing this template, both the grantor and beneficiaries can maintain compliance with the Internal Revenue Service (IRS) regulations, while ensuring that the gifted funds remain eligible for the annual gift tax exclusion.