easy · Certified Financial Planner Risk Management
The Ibarra family creates an irrevocable life insurance trust (ILIT) and grants Crummey withdrawal powers to their three children to qualify for the gift tax annual exclusion. In 2026, the Ibarras contribute 25,000 to the trust.
If the trust contains100,000 in assets, what is the maximum amount that can lapse for one beneficiary without being treated as a taxable gift to the other beneficiaries?
- $25,000.
- $8,333.
- $5,000.
- $19,000.
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