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.
Maricopa Arizona Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death is a specific type of trust arrangement that offers individuals residing in Maricopa, Arizona a way to plan their estate and ensure the financial security of their loved ones after their passing. This trust arrangement provides several benefits and legal protections for individuals who wish to transfer their assets to their children while also ensuring their surviving spouse's financial stability. One type of Maricopa Arizona Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death is the "Marital Trust," also known as the "A Trust" or "Survivor's Trust." This type of trust allows individuals to transfer their assets to their surviving spouse upon their death, ensuring that the spouse will have access to sufficient funds for their lifetime. Upon the surviving spouse's passing, the remaining trust assets will then be distributed to the donor's children from a previous marriage or other designated beneficiaries. Another type is the "Disclaimer Trust," often referred to as the "B Trust" or "Family Trust." With this arrangement, the surviving spouse has the option to disclaim ownership of assets that would pass to them under the Marital Trust. By disclaiming these assets, they are redirected into the Disclaimer Trust, which is ultimately distributed to the donor's children after the surviving spouse's death. The Maricopa Arizona Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death offers significant advantages to individuals planning their estate. Firstly, it allows the donor to maintain control over the distribution of their assets, ensuring that their children from previous marriages or desired beneficiaries receive an inheritance. Secondly, it provides the surviving spouse with financial security during their lifetime by guaranteeing access to the trust's principal for their benefit. Lastly, this trust arrangement offers potential tax benefits, including estate tax reduction and protection of the estate from creditors. It is crucial to consult with a qualified estate planning attorney in Maricopa, Arizona, to create a personalized Maricopa Arizona Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death that aligns with individual needs, goals, and the most up-to-date legal provisions.
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.
