There is an estate planning technique called the Crummey Power. It is a technique that enables a person to receive a gift that is normally not eligible for a gift-tax exclusion and change it into one that is eligible for an exclusion. The Crummey power was named after Clifford Crummey who wanted to build a trust for his sons and still be able to reap the yearly tax exemption benefits as well.
How does it work? The Crummey power works when a donor makes a contribution to an irrevocable trust. The beneficiary is notified that they can withdraw the funds in no less than 30 days, but when the beneficiary does not withdraw the funds, they go back into the trust and then can be subject to the annual gift tax exclusion. It is important that the donor inform the beneficiary that the the are using the Crummey power or the beneficiary can withdraw the money and negate the entire plan.