Extract to table

If the premium contribution is not received by Northgate with sufficient lead time, there is a risk that the Crummey notice procedures cannot be completed before the premium must be paid, which could compromise the availability of the annual gift tax exclusion for that year's contribution

3 Lifetime Exemption Usage The remaining portion of the annual premium contribution not covered by the annual exclusion is calculated as follows: $187,500 − $51,000 = $136,500 This $136,500 constitutes a taxable gift and must be reported on your federal gift tax return (IRS Form 709) for the applicable tax year

1968), in order for contributions to the ILIT to qualify for the annual gift tax exclusion under IRC § 2503(b), each Crummey beneficiary must receive timely written notice of his or her right to withdraw a portion of the contribution

The Crummey withdrawal notice must be sent promptly after the contribution is received by the trustee — ideally within 3 to 5 business days of receipt

Each notice must contain the following information: (a) a statement that a contribution of $[amount] has been made to the Caldwell Family Insurance Trust; (b) a statement that the beneficiary has the right to withdraw up to $5,000 from the trust; (c) a statement that the withdrawal right must be exercised within 30 days of the date of the notice; and (d) a description of the procedure for exercising the withdrawal right (i

All such actions must be taken exclusively by Northgate Trust Company of Delaware, as trustee of the ILIT, in accordance with the terms of the Trust Agreement