easy · Certified Financial Planner Psychology

Darby is a beneficiary of a trust and holds a Crummey power.

To avoid triggering a taxable lapse of a power of appointment, the trust document restricts Darby's annual withdrawal power to the greater of which two amounts?

  1. $5,000 or 10% of the trust assets.
  2. $19,000 or 5% of the trust assets.
  3. $3,000 or 3% of the trust assets.
  4. $5,000 or 5% of the trust assets.

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