A written notification to
the beneficiaries who have withdrawal rights that contributions of
money ‐‐typically to an irrevocable life insurance trust ‐‐have
been received on their behalf. The beneficiaries then have a period of time to
withdraw the funds. Use of a Crummey Letter can avoid certain potential tax
problems arising from the gift of a future interest and is a record of
the amount of gifts given for purposes of the annual gift tax exemption of
$12,000 per person. [2008]