In community property states all of the following apply except: It would be very unusual for a Crummey irrevocable insurance trust that benefits the surviving spouse to be the entire trust that is created. The grantor may make gifts that qualify for the annual exclusion from gift tax under IRC Sec. 2503(b). A wife is usually the grantor as to one-half of the gifts used to pay the insurance premium, and it would not be appropriate to give the wife a life interest in the entire policy proceeds. A couple owning community property can give $28,000 (in 2015) per recipient without any need for gift splitting.