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David P. McCabe,
WMCP®, ChFC®, CLU®
Financial Planner
Nathaniel D. High, RICP®
Financial Planner
Nicholas J. Over, CFP®
Financial Planner
Sara E. Martin
Operations Manager
Jennifer A. McCabe
Client Service Specialist
jennifer.mccabe@prudential.com
Centuria Financial Group
2333 Baltimore Blvd Suite B
Finksburg, MD 21048
Phone: 443-952-7232
March/April 2025
Protect Assets and Help Minimize Estate Tax
A Crummey Trust is known for leveraging the annual gift tax exclusion to minimize gift tax on assets passing to children, particularly minors and other loved ones in the future. The exclusion lets you give a certain amount to any number of people outright or in a trust gift-tax-free each year.
Creating and Funding a Crummey Trust
People commonly fund Crummey trusts with life insurance. You can purchase a new policy or use an existing one. The goal is to prevent the insurance proceeds from being included in your taxable estate and have benefits managed to avoid misuse by beneficiaries or being subject to their creditors. Crummey trusts are irrevocable.What makes a Crummy trust different from other trusts is that you designate a set period during which your beneficiaries can withdraw assets. For example, choose a withdrawal period within 30 days after you create and fund the trust. New withdrawal notices must be sent whenever assets are added to the trust.
More Uses
Any financial gifts you designate to make will be distributed to each beneficiary according to your terms and timeline. You might, for example, specify terms that the trust assets be used to pay for your child's college. Another idea is to direct that the assets be distributed when the child accomplishes a goal, such as completing college, or for a specific purpose, such as buying a house or starting a business.A Crummey trust is complex. To accomplish gift-tax and protection goals, you need the guidance of your trusted legal and financial professionals.
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David P. McCabe, Nathaniel D. High, and Nicholas J. Over are Financial Planners with, and offer securities and investment advisory service through LPL Enterprise (LPLE), a Registered Investment Advisor, Member FINRA/SIPC, and an affiliate of LPL Financial.
LPLE and LPL Financial are not affiliated with Centuria Financial Group.
This newsletter is general educational information provided by a Prudential Financial Professional and is not intended to market or sell any specific products and services, but rather provide general information about the subject matter covered only.
Centuria Financial Group and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.