What type of trust is eligible for the annual exclusion for transfers?

The Crumney Trust is designed to allow beneficiaries to withdraw contributions made to the trust for a limited time, which makes it eligible for the annual gift tax exclusion. This trust generally holds gifts made by the grantor that enable the beneficiaries to access a portion of the funds, thus qualifying those gifts for the exclusion under IRS rules. When beneficiaries can withdraw gifts, such gifts are treated as present interest gifts, which are necessary for the annual exclusion to apply.

In contrast, other types of trusts listed do not typically qualify for the annual exclusion. For instance, a Grantor Retained Annuity Trust (GRAT) involves a transfer made with a retained interest by the grantor, meaning the gift does not qualify for the annual exclusion since beneficiaries do not have immediate access to the funds. A Qualified Personal Residence Trust (QPRT) allows the grantor to transfer a residence while retaining a right to live in it, and the gift is considered a future interest, thus ineligible for the annual exclusion. Similarly, a Revocable Trust allows the grantor to retain control over the assets and does not provide a completed gift to the beneficiaries, meaning it also does not qualify for the annual exclusion.

Therefore, the Crumney Trust stands out because