The purpose of estate tax planning is to maximize the assets you pass on to future generations by minimizing gift and estate taxes. Estate-tax strategies revolve around the use of irrevocable trusts. This article discusses the most common types of irrevocable trusts that are used to minimize gift and estate […]
In order to qualify as trust as a “Crummey trust,” the Trustee of the trust must provide the beneficiaries with notice of their right to withdraw assets from the trust. These “Crummey letters” or, alternatively, “Crummey notices,” are very important. Below is an example of a Crummey notice. Feel free to use this example of a Crummey notice for your own purposes.
[Insert Name of Trust]
Valur Trust Company, Trustee
March 21, 2024
[Insert Name of Beneficiary]
[Insert Address of Beneficiary
Dear [Insert Name of Beneficiary]:
Valur Trust Company is the Trustee of a trust created by [Insert Name of Grantor]. Under the terms of the trust agreement, in each calendar year, you have certain powers of withdrawal. We are required to give you notice of those rights of withdrawal with respect to the initial contribution and each addition to the principal of the trust within a reasonable time after the contribution or addition is made. The trust provisions relating to those withdrawal powers are excerpted and included as an attachment to this letter.
A contribution was made to the trust on March 19, 2024, in the amount of $18,000. Therefore, you now have the right to withdraw up to $18,000 from the trust.
In order to exercise your right of withdrawal, you must notify me in writing, in my capacity as a Trustee, and let me know the amount that you wish to withdraw.
Please acknowledge that you have received this notification by countersigning below. If you have any questions, feel free to call us anytime at xxx-xxx-xxxx.
Sincerely,
[Insert Name of Trust]
Valur Trust Company
By: ________________________
Name: ______________________
Title: _______________________
I hereby acknowledge that I have received the foregoing notification of my right to withdraw with respect to a portion of the [Insert Name of Trust].
________________________________
[Insert Name of Beneficiary]
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