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.
The Idaho Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death is a specific type of trust arrangement that allows individuals in Idaho to transfer their assets to their children upon the death of their spouse while still providing for the financial needs of the surviving spouse during their lifetime. This legal arrangement offers a way to ensure that the children receive an inheritance while also offering protection for the surviving spouse. Keywords: Idaho, Inter Vivos TIP Trust, Principal, Donor's Children, Spouse's Death, assets, transfer, financial needs, lifetime, inheritance, protection. Different types of Idaho Inter Vivos TIP Trusts with Principal to Donor's Children on Spouse's Death may include: 1. Revocable Idaho Inter Vivos TIP Trust: This type of trust allows the donor to make changes or revoke the trust during their lifetime. It provides flexibility should any circumstances change. 2. Irrevocable Idaho Inter Vivos TIP Trust: This form of trust cannot be changed or revoked once it is established. It offers increased protection against potential creditors and estate taxes. 3. Testamentary Idaho Inter Vivos TIP Trust: This trust is created through provisions in a person's will and takes effect upon the death of the donor. It allows for the transfer of assets to the children after the spouse's passing. 4. Asset Protection Idaho Inter Vivos TIP Trust: This type of trust provides additional protection for assets from potential creditors and lawsuits, ensuring that the principal remains secure and available for the children upon the spouse's death. 5. Tax Planning Idaho Inter Vivos TIP Trust: This trust aims to minimize estate taxes by utilizing specific tax planning strategies, allowing for the transfer of assets to children while reducing tax liabilities. Overall, the Idaho Inter Vivos TIP Trust with Principal to Donor's Children on Spouse's Death is a powerful estate planning tool that provides individuals with the ability to transfer assets to their children while ensuring the financial security of their surviving spouse. It offers different types of trusts to suit varying needs, such as revocable or irrevocable arrangements, asset protection, and tax planning.
