easy · Certified Financial Planner General Principles

The Ellison household established an irrevocable trust and included Crummey withdrawal powers for two beneficiaries.

To avoid triggering a taxable lapse of a power of appointment for these beneficiaries, what is the maximum restricted withdrawal amount in 2026?

  1. $7,500
  2. $19,000
  3. 100% of the annual gift exclusion per beneficiary.
  4. The greater of $5,000 or 5% of the trust assets.

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