A trust is a fiduciary relationship in which one party holds legal title to another's property for the benefit of a party who holds equitable title to the property. An inter vivos trust is a trust that becomes effective during the lifetime of the person creating the trust (the settler or trustor).
A qualified terminable interest property trust, often referred to as a "QTIP" trust, allows a bequest to a spouse in trust that, after a proper election by the beneficiary spouse, qualifies for the unlimited marital deduction:
" if the beneficiary spouse is entitled to all of the income from the trust property,
" if the income is payable annually or at more frequent intervals, and
" if no person, including the beneficiary spouse, has the power to appoint any part of the qualifying property to any person other than the beneficiary spouse during the beneficiary spouse's lifetime.
In order that the property transferred to a surviving spouse by means of an inter vivos marital deduction trust qualify for the marital deduction, the property must be includible in the trustor's gross estate for federal estate tax purpose.
A Fulton Georgia Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death is a type of trust that allows an individual (the donor) to transfer assets to a trust during their lifetime while also ensuring that these assets pass on to their children upon the death of their spouse. This type of trust is commonly used in estate planning to provide financial security for the surviving spouse and protect the interests of the donor's children. The Fulton Georgia Inter Vivos TIP Trust operates under specific guidelines and features various components to ensure its effectiveness. Here are the key points and different types of this trust: 1. Purpose: The primary purpose of this trust is to provide for the surviving spouse during their lifetime while preserving the principal amount for the donor's children upon the spouse's death. 2. Donor: The individual who establishes the trust and contributes assets into it is called the donor. The donor intends to transfer their assets to the trust without immediate ownership rights being assigned to the children. 3. Inter Vivos Trust: An inter vivos trust is established during the donor's lifetime, as opposed to a testamentary trust, which is created upon the donor's death. This allows the donor to have more control over the trust's terms and implementation. 4. TIP Trust: TIP stands for Qualified Terminable Interest Property. It refers to the assets placed in the trust that provide income to the surviving spouse for their lifetime while ensuring their inability to change the ultimate distribution of those assets. 5. Principal Distribution: Upon the spouse's death, the trust principal is distributed to the donor's children or other beneficiaries named in the trust document. This protects the assets from being used or controlled by the surviving spouse's future spouse, creditors, or other unforeseen circumstances. 6. Income Distribution: The surviving spouse is entitled to receive income generated from the trust assets during their lifetime. This income can be used for their support, maintenance, and other financial needs. 7. Executor and Trustee: The trust document designates an executor, typically a trusted individual or professional entity, responsible for managing the trust's transition upon the death of the spouse. The trustee, also appointed in the trust document, is authorized to administer the trust, make investment decisions, and distribute income to the surviving spouse. It is important to note that variations of this trust may exist, depending on the specific requirements or objectives of the donor. Additional trust provisions can be incorporated, such as specific conditions for income distribution, allocation of remaining assets in case of the spouse's remarriage, or contingencies for the donor's children in case they pass away before the surviving spouse. Overall, the Fulton Georgia Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death is a valuable estate planning tool to ensure financial protection for both a surviving spouse and the donor's children, while maintaining a level of control over the distribution of assets.A Fulton Georgia Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death is a type of trust that allows an individual (the donor) to transfer assets to a trust during their lifetime while also ensuring that these assets pass on to their children upon the death of their spouse. This type of trust is commonly used in estate planning to provide financial security for the surviving spouse and protect the interests of the donor's children. The Fulton Georgia Inter Vivos TIP Trust operates under specific guidelines and features various components to ensure its effectiveness. Here are the key points and different types of this trust: 1. Purpose: The primary purpose of this trust is to provide for the surviving spouse during their lifetime while preserving the principal amount for the donor's children upon the spouse's death. 2. Donor: The individual who establishes the trust and contributes assets into it is called the donor. The donor intends to transfer their assets to the trust without immediate ownership rights being assigned to the children. 3. Inter Vivos Trust: An inter vivos trust is established during the donor's lifetime, as opposed to a testamentary trust, which is created upon the donor's death. This allows the donor to have more control over the trust's terms and implementation. 4. TIP Trust: TIP stands for Qualified Terminable Interest Property. It refers to the assets placed in the trust that provide income to the surviving spouse for their lifetime while ensuring their inability to change the ultimate distribution of those assets. 5. Principal Distribution: Upon the spouse's death, the trust principal is distributed to the donor's children or other beneficiaries named in the trust document. This protects the assets from being used or controlled by the surviving spouse's future spouse, creditors, or other unforeseen circumstances. 6. Income Distribution: The surviving spouse is entitled to receive income generated from the trust assets during their lifetime. This income can be used for their support, maintenance, and other financial needs. 7. Executor and Trustee: The trust document designates an executor, typically a trusted individual or professional entity, responsible for managing the trust's transition upon the death of the spouse. The trustee, also appointed in the trust document, is authorized to administer the trust, make investment decisions, and distribute income to the surviving spouse. It is important to note that variations of this trust may exist, depending on the specific requirements or objectives of the donor. Additional trust provisions can be incorporated, such as specific conditions for income distribution, allocation of remaining assets in case of the spouse's remarriage, or contingencies for the donor's children in case they pass away before the surviving spouse. Overall, the Fulton Georgia Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death is a valuable estate planning tool to ensure financial protection for both a surviving spouse and the donor's children, while maintaining a level of control over the distribution of assets.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
