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Louis Harrison News Post

Lapse Of Crummey Power Need Not Result In Taxable Gift If Hanging Power Is Used


A hanging power, whereby the “taxable” part of a beneficiary’s power to invade corpus is carried over until it becomes nontaxable, can avoid gift tax consequences, but is likely to meet IRS opposition. This article examines the future use of hanging powers and alternatives to such powers.

Read entire article here.