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About the Teleseminar
“Crummey powers” are frequently used in trust instruments to allow the gift of a future interest to be treated as a gift of a present interest. This is important for gift tax purposes because only the gift of a present interest – i.e., money or property that can be claimed and used immediately – qualifies for the annual gift tax exclusion of $14,000. If a gift is not of a present interest, it cannot be excluded and is taxable. The IRS frequently attacks Crummey powers, viewing them as a tax-reduction contrivance that have little basis in reality. Still, if Crummey powers are carefully drafted and utilized, courts uphold them and they are an effective tool for tax reduction for trusts of every size. This program will provide you with a practical guide to planning and drafting Crummey powers and avoiding common traps in their use.
- What are Crummey powers exactly – and how are they used in trusts?
- Understanding the tax and economic benefits of Crummey withdrawal powers
- Notice to beneficiary of powers – actual notice or mere knowledge by beneficiary?
- Crucial difference between explicit waiver of powers v. allowing powers to lapse
- Consequence of a failed Crummey power lapse
- Structuring a “hanging Crummey” and their “5 and 5” benefits
- Practical mistakes and traps for settlors, trustees and beneficiaries
About the Speaker
Michael T. Clear is a partner in the Greenwich, Connecticut office of Wiggin and Dana, LLP, where his practice focuses on estate planning, estate and trust administration, probate litigation and business succession planning. His estate planning practice includes assisting individuals and families with tax-efficient and practical estate and gift planning, including the preparation of wills, revocable living trusts, insurance trusts, and qualified personal residence trusts. He was recently selected by the Connecticut Law Tribune as a New Leader in the Law. He is a co-chair of the Probate and Estates Section of the Fairfield County Bar Association and is a member of the Board of Directors of the Connecticut Chapter of the Exit Planning Exchange. Mr. Clear received his B.A. from the University of Richmond, his M.Ed from the University of Maryland, and his J.D., magna cum laude, from Quinnipiac University School of Law.
Mandatory MCLE Credit Hours
This seminar qualifies for 1.0 MCLE Credit Hour, including up to 1.0 Estate Planning & Probate Law Specialty Credit Hour
(Instruction Level: Intermediate)*Live Teleseminar programs are not live credit programs. Supreme Court Commission on CLE rules allow SC Bar members to use Alternatively Delivered programming to obtain up to 6.0 hours of MCLE each reporting period. For FAQ’s please click here.