Crummey Trust

A Crummey trust enables parents or other grantors to give children annual amounts of money while protecting these funds from gift taxes.

As of 2018, the limit to the annual exclusion from taxes is $15,000. However, this exclusion doesn't apply to gifts made to trusts, so you need to refer to the Crummey Power provision in order to protect those types of gifts from the tax man.

Under Crummey Power, one can make a gift to a trust that is officially for future use, but would still be able to utilize a gift tax exclusion on her taxes. Recipients can also have access to the funds, usually for 30-60 days, up to the limit of the most recent gift.