260-An Introduction to Trusts in the Context of Estate Planning
Radical Personal Finance
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What Is a Crummy Power in a Life Insurance Trust?
The point of the trust was to turn a gift of an actual life insurance premium into a gift of a present interest, which would be eligible for the annual exclusion amounts. The crummy power actually means is that when the grandtour puts the money into the trust, the beneficiaries of the trust must have the right to withdraw money from the trust. But if the right is not exercised, then the trustee can take that money and use it appropriately.
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