easy · Certified Financial Planner Professional Conduct

The Hartwell household established a trust for their children and included a Crummey power to allow contributions to qualify for the annual gift tax exclusion.

To avoid triggering a taxable lapse of a power of appointment for the beneficiaries, the withdrawal power should be restricted to the greater of which two amounts?

  1. 5,000 or 5% of trust assets.
  2. 19,000 per beneficiary.
  3. The total value of the gift regardless of size.
  4. 10,000 or 10% of trust assets.

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