Crummey Power

We can all thank some guy named Crummey for winning a court case in 1968. That case enabled someone to make a gift to a trust that's officially for future use, but still be able to utilize a gift tax exclusion on her taxes.

Normally, the gift giver can't utilize a gift tax exclusion if the gift is for “future interest.” But thanks to Mr. Crummy, the beneficiary can have immediate access to the loot (usually for 30 to 60 days) and the gift giver can get a deduction on her taxes (up to a certain limit, of course.)