Sunday, July 11, 2010
"Crummey Notices" are named after the case of (IRS) Commissioner vs. Crummey. These notices establish that a trust beneficiary received notice of withdrawal rights. The IRS takes the position that they are required. It has not been extensively litigated and the courts have not imposed it as a requirement. On the notion that you cannot (or perhas shouldn't) "fight city hall" good practice suggests they be done.
They should generally only establish that proper notice has been given. The should not contain a waiver, and need not state amount contributed to the trust, etc.