Crummey trust guide
A Crummey trust is reviewed when a family wants to make trust gifts using temporary withdrawal rights that may support annual exclusion gift treatment. It is a specialized trust topic because the design usually depends on how beneficiaries receive notice, how long the withdrawal right lasts, and how the gift is documented.
Last reviewed: March 9, 2026
Reviewed against: trust and estate planning references listed on the sources page.
Publisher: Larry Trustee AI Editorial Team | hello@larrytrustee.ai
How a Crummey trust is usually structured
Contributions are made to the trust, beneficiaries receive a temporary right to withdraw a stated amount, and the trustee follows the notice and administration process described in the trust documents. When the withdrawal period expires, the funds may stay in trust under the long-term distribution rules.
Why people compare Crummey trusts with other gifting structures
- To evaluate whether annual gifts can be made to a trust instead of outright to beneficiaries.
- To keep long-term control over gifted assets while still analyzing annual exclusion treatment.
- To coordinate gifting strategy with grantor trust or insurance-trust planning.
- To review whether the trustee can manage the notice and recordkeeping requirements consistently.
What should be reviewed before using one
- Whether the withdrawal powers and notice timing are clearly documented.
- Whether the beneficiaries and gift amounts fit the intended structure.
- Whether annual administration will actually be maintained each time gifts are made.
- Whether the trust should work together with insurance or other irrevocable trust planning.