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May 28, 2014
Curtis Associate Michael S. Schwartz Authors Article in Law360
Trusts and Estates associate Michael S. Schwartz published an article, “The Case for Eliminating Crummey Powers,” in Law360 on May 28, 2014. The article analyzes a new proposal in the 2015 “Greenbook”—The Department of the Treasury’s Explanations of the Administration’s Revenue Proposals—that would simplify the process of making annual gifts to trusts (particularly irrevocable life insurance trusts) without the use of any lifetime Federal gift tax exemption. The article summarizes the administrative burdens and tax traps associated with trust funding mechanisms under current law and discusses how the new proposal would change this process.