medium · Certified Financial Planner Estate Planning
Mr. Ainsley transfers 30,000 to an ILIT for his son, James, in 2026. The trust corpus is100,000. James has a Crummey power. To avoid a taxable gift by James, a 'hanging power' is used.
What amount of the withdrawal right will 'hang' and remain exercisable by James at the end of the year?
- $30,000
- $11,000
- $25,000
- $5,000
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