Agift that might otherwise be viewed as a future interest in a trust can be treated as a present interest gift if:

Complete Question. A gift that might otherwise be viewed as a future interest in a trust can be treated as a present interest gift if:

2. The beneficiary has the right to withdraw a contribution (gift) to the trust.

Explanation:

The Crummey power, to convert future interest gift to a present interest gift beneficiaries are allowed to withdraw contributions to a trust within a specific period of time usually 30 to 60 days.

The total withdrawal amount should be equal to the annual gift tax exclusion in a specific time period otherwise the asset will belong to the trust.