What is an Estate Trust?
An estate reduction trust, also known as a “Crummey Trust,” will achieve the estate planning goal of transferring wealth from one generation to the next but will also limit the beneficiaries’ decision-making power over the assets that have been transferred.
Who Should Use An Estate Trust?
Parents and grandparents may have concerns that the younger generation is not mature enough to handle the sudden wealth that a trust, or an otherwise sound estate plan, may bestow. An estate reduction trust is established to give the child the minimum access to the assets required by law for the transfer to be considered a completed gift for estate planning purposes.