Crummy is defined as dirty, run-down, tacky, worthless or just plain lousy.  On the other hand, if you’re a “Crummey” advisor, that’s a good thing – especially if you’re making “Crummey” recommendations to your high-net-worth (HNW) clients.  Let me explain what I mean about making “Crummey” recommendations. A “Crummey Trust” is used when a parent wants to make lifetime gifts to his or her children, free from gift or estate taxes.  As long as the gift amount is equal to or less than the annual IRS gift tax exclusion amount (currently $14,000 per year per person or $28,000 per couple), the money remains gift- and estate-tax free. With such a trust, the family can continue funding it with the annual maximum gift tax exclusion, and the children will have access to it at some point, depending on the trust’s actual provisions. 

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