Final answer:
Crummey provisions to qualify a donation to an irrevocable trust for the $15,000 annual present interest exclusion were established by case law.
Step-by-step explanation:
In order to qualify a donation to an irrevocable trust for the $15,000 annual present interest exclusion, crummey provisions were established by case law.
Crummey provisions are named after a court case, Crummey v. Commissioner, where the court allowed certain withdrawal rights for beneficiaries of an irrevocable trust to be considered present interests and therefore eligible for the annual exclusion. These provisions allow donors to satisfy gift tax requirements while still maintaining control over the trust assets.